On January 1, 2021, Piling Company has Land, Building and Machinery with brought forward balances from the previous year of P325,000, P2,535,000, and P8,450,000 respectively, and total accumulated depreciation using the straight-line method of P4,160,000. Annual depreciation charged to income at each year-end was P650,000.
In 2022, Piling purchased an additional machine and retired an old one. The new machine, costing
P585,000, increased the annual depreciation by 10%. By December 31, 2022, the accumulated depreciation account has ending balance of P5,200,000.
What amount was debited to the accumulated depreciation account upon the retirement of the old machinery?