1. On December 31, 2019, Mozart Corporation sold for P50,000 an old machine having an original cost of P90,000 and a carrying amount of P40,000. The terms of the sale were as follows: 1) P10,000 down payment; and 2) P20,000 payable on December 31 each of the next two years. The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. The PV of 1, 9% ordinary annuity 1.7591 The PV of 1, 9% in two periods 0.8417

a. How much should be recognized as interest income in 2020 related to above transaction?

b. How much should be recognized as gain on sale of machine?

Rush please. Thank you