On January 1, 2021, Chua Company purchased a piece of equipment with a list price of P6,000,000. The contract stipulates that Chua pays a down payment of P2,000,000, with the balance due in ten equal semi-annual instalments of P518,018 on June 30 and December 31. At the time of purchase, the prevailing interest rate on such contracts was 10%.

How much would be recorded as equipment?

a. P6,180,183

b. P6,000,000

c. P4,000,000

d. P5,180,000