Due to extreme financial difficulties,an entity negotiated a restructuring of a10%,P5,000,000note payable due on December31,2018.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, 2018. The present value of 1 at 10% for 3 periods is .75 and the present value of an ordinary annuity of 1 at 10% for three periods is 2.49.

What is the carrying amount of note payable on December 31 2019?