Chocora Company acquired new manufacturing equipment on January 1, 2026, on installment basis. The deferred payment contract provides for a down payment of P300,000 and an 8-year note for P3,104,160. The note is to be paid in 8 equal annual installment payment of P388,020, including 10% interest. The payments are to be made on December 31 each year, beginning December 31, 2026. The equipment has a cash price equivalent of P2,370,000. Chocora's financial year-end is December 31. The amount of interest expense to be recognized in 2027 is