On January 1. 2022. State Co. sold equipment to Nation Co. The latter issued a five-year P500.000, 10% note to State Co. The note requires interest to be paid annually every December 31 starting December 31, 2022 until the maturity of the note on December 31, 2026. The equipment

has a cost of P1,000,000 and accumulated depreciation as of January 1, 2022, of P550.000. The prevailing interest rate for a note of this type is 12%. What amount should be reported as gal (loss) on the sale of equipment?

(Round off PV factors to four decimal places.)