Sensible Company sold an item of plant and machinery on January 1, 2010 for P2,500,000, it's fair value, when its carrying amount was P2,000,000. Sensible company leased the item back on that date for 5 years, the item's remaining useful life. Lease payments are P700,000 on January 1 each year. What is the profit on disposal to be recognized in profit or loss for 2010? *

A. 250,000

B. 0

C. 100,000

D. 500,000