On November 1, 2006, Mason Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1, 2006.  The bonds were sold to yield 10% with total proceeds of P7,000,000 plus accrued interest.  Interest is paid every April 1 and October 1.  What should Mason report for interest payable in its December 31, 2006 balance sheet?

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