CASE 3 On January 1, 2020, GEN Co converted its 12%, P1,500,000 face value bonds payable with carrying amount of P1,552,049 for 20,000 ordinary shares with par value of P50. The bonds were originally issued to yield 10%. The fair value of the bonds on the date of retirement is P1,600,000.

Assume instead that the bonds are nonconvertible and the transaction happen because of equity swap.

2. How much is the gain (or loss) on conversion of the bonds to be recognized in the profit or loss during the period?