Howe Company leased equipment to Kew Company on January 1, 2010, for an eight-year period expiring December 31, 2017. Equal payments under the lease are P500,000 and are due on January 1 of each year. The first payment was made on January 1, 2010. The selling price of the equipment is P2,900,000 and its carrying amount is P2,000,000. The lease is appropriately accounted for as a sales type lease. The present value of the lease payments at an implicit interest rate of 12% is P2,780,000. What amount of profit on the sale should Howe report for the year ended December 31, 2010?

A. 900,000

B. 333,600

C. 240,000

D. 780,000