Due to extreme financial difficulties, an entity negotiated a restructuring of a 10%, P5,000,000 note payable due on December 31, 2019. The unpaid interest on the note on such date is P500,000. The creditor agreed to reduce the face amount to P4,000,000, forgive the unpaid interest, reduce the interest rate to 8% and extend the due date three years from December 31, 2019. The present value of 1 at 10% for three periods is 0.75 and the present value of an ordinary annuity of 1 at 10% for three periods is 2.49.

What is the discount or premium on the new note payable on December 31,2019?