Reason Inc. sold its old equipment with original cost of P2,000,000 and accumulated depreciation of P1,800,000 for 3-year P250,000 note. The interest rate of the loan is 7% while the market rate of similar notes is 8%. The journal entry to record the disposal of the equipment would NOT include

a. DR: Note Receivable 250,000;

b. CR: Gain on sale of equipment 56,561

c. CR: Equipment 2,000,000

d. CR: Unearned Interest Income 6,443