On January 1, 2020 Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on January 1, 2030. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000.The entity used the interest method of amortizing bond premium. Interest is payable annually on December 31. On December 31, 2020, what is the balance of the premium on bonds payable?

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