On December 31, 2020, Park Company sold used equipment with a carrying amount of P2,000,000 in exchange for noninterest bearing note of P5,000,000 requiring ten annual payments of P500,000. The first payment was made on December 31,2020. The market interest for similar note was 12%. The present value of an ordinary annuity of 1 at 12% is 5.65 for ten periods and 5.33 for nine periods. What is the gain on sale of equipment to be recognized in 2020? *

a.3,000,000

b.2,175,000

c.825,000

d.0