An equipment was acquired by ABC Company by issuing a Note Payable due 4 years after the issuance. This note will evidence the payment of the balance of the company after making a down payment of P200,000 for the equipment with an instalment price of P800,000. The note does not indicate any interest on its face but the implicit rate for this kind of note is 10%. This kind of equipment sells for P600,000 if acquired with straight cash. The present value of 1 at 10% for 4 years is 0.6830 while the present value of an ordinary annuity of 1 at 10% for 4 years is 3.1699. The amount to be debited to Equipment is P600.000 P609.800 OP409.800 P475.485