Christian Co. is threatened with bankruptcy due to its inability to meet interest payments and fund requirements to retire P6,000,000 note payable with accrued interest payable of P600,000. Christian Co. has entered into an agreement with the creditor to exchange equity instruments for financial liability. Christian has an option to exchange 300,000 ordinary shares with P5 par value and PIO market value, and 25,000 preference shares with P10 par value and PBO market value. The fair market value of the financial liability is P5,200,000 and the carrying amount is P5,800,000. What is the gain on extinguishment of the note payable? o apo O b. P2,100,000 OG.PL 400.000 d. 1,500,000