CASE 17 - covers item 21 21. During 2011, Selibio Company experienced financial dif and is likely to default on a P5, 000,000, 15% three-year no January 1, 2009, payable to Ronalyn Bank. On December 31, 2011, agreed to settle the note and unpaid interest of P750, 000 for P4, 100, 000 cash payable on January 31, 2012. What amount should report as gain from extinguishment of debt in its 2011 income s