On January 1,2014,PC purchased a used cement truck from EC. The carrying value of the truck on EC's books was P12,500. PC paid cash of P2,000 and gave a 2-year note that required semi-annual payments of P4,000 each payable at the end of each semi-annual period (the market rate of interest was 12 percent). A similar truck reportedly was sold recently for P14,000.PC Company should record the cost of the truck as