6.On December 31, 2014 Colt Company is experiencing extreme financial pressure and is in default in meeting interest. payment on its long term note of P6, 000,000 due on Decermber 31, 2016, The interest rate is 12% payable every December 31. In an agreement with the creditor, Colt obtained the following changes in the terms of note: a. The accrued interest on December 31, 2014 is forgiven. b. The principal is reduced by 500,000 C. The new interest rate is 8%. d. The new date of maturity is December 31, 2018. The present value of 1 at12% for four periods is 0.6355 and the present value of an ordinary annuity of 1 at 12% for four periods is 3.0373. How much is the gain or loss on extinguishment? a. 2,504,750 b. 1,168,338 c. 1,888,338 d. 0 c og in the income statement for 2013, Additional information