On January 1, 2021. This Company acquired a machine by issuing a 3-year, 3%, P4,000,000 note payable. Principal is due on January 1, 2024 but interests are to be paid annually. The prevailing interest...

On January 1, 2021. This Company acquired a machine by issuing a 3-year, 3%, P4,000,000 note payable. Principal is due on January 1, 2024 but interests are to be paid annually. The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the note on initial recognition?