On Jan 1, 2020, ABC Company purchased an equipment by making a down payment of P 400,000 and issuing a note payable for P 1,800,000. A payment of P 600,000 is to be made at the end of each year for three years. The applicable rate of interest is 8%. The present value of an ordinary annuity of 1 at 8% for three periods is 2.58. How much should be capitalized as cost of the equipment