On January 1, 2011, Western Company lent P1,780,000 cash to Eastern Company.The promissory note made by Eastern for P2,000,000 did not bear explicit interest, and was due on December 31, 2012.No other rights or privileges were exchanged.The prevailing interest rate for a loan of this type was 6%.The present value of 1 for two periods at 6% is 0.89.What should be recognized as interest expense for 2011?