Due to extreme financial difficulties. Melchizedek Company has negotiated a restructuring of its B% P2.000.000 note payable due on December 31, 2020. The unpaid interest on the note on such date is P160,000. The creditor has agreed to reduce the face value to P1,500,000, Forgive the unpaid interest, reduce the interest rate to 6% and extend the due date two years from December 31, 2020. The present value of 1 at Gm for two periods is 0.8900 The present value of 1 at 8' for two periods is 0.8573 The present value of an ordinary annuityof 1 at 6% for two periods is 1.8334 The present value of an ordinary annuity of 1 at 86 for two periods is 1.7833 Melchizedek Company should report gain on extinguishment of debt in its 2020 income statement at 0 553,553 499.994 O 713,553 O none of these O 659,994