On December 31, 2016, X Corp. was indebted to Zyland Co. on a P1,000,000, 10% note. Only interest had been paid to date, and the remaining life of the note was 2 years. Because X Corp. was in financial difficulties, the parties agreed that X Corp. would settle the debt on the following terms:

Settle one-half of the note by transferring land with a recorded value of P400,000 and a fair value of P450,000

Settle one-fourth of the note by transferring 10,000, P1 par, ordinary shares with a fair market value of P15 per share

Modify the reducing the remaining one-fourth of the note by reducing the interest rate to 5% for the remaining 2 years and reducing the principal to P150,000.

What total gains should X Corp. record in 2016 from this troubled debt restructuring?

a. P100,000c. P213,024

b. P200,000d. P313,024