1. On January 1, 2022, Strive Bank loaned P2,000,000 to Strike Company. Under the loan agreement, the loan interest rate is 10% and that Strike Company is to pay interest on the loan annually every December 31 starting December 31, 2022. The loan will mature on December 31, 2026.On December 31, 2022, Strive Bank has determined that there is a slight increase in the credit risk of the loan, therefore needs to measure the 12-month expected credit loss for the loan. The bank determined that the probability of the loan being in default over the next 12 months is 1% and that 20% of the principal amount will be lost over the term of the loan. On December 31, 2023, the bank has determined that there is a significant increase in the credit risk of the loan. The probability of the loan being in default over the life of the loan is 10% and that 25% of the principal amount will be lost over the term of the loan. During 2024, the company began to face financial difficulties. On December 31, 2024, the bank considered the loan to be impaired. Interest for 2024 was collected. However, only 40% of the principal amount is expected to be received at maturity date. How much is the interest income shall be reported for 2025? Use appropriate present value factors rounded off to four decimal places.

2. What is the fair value of the biological assets on December 31, 2021?

AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had ten (10) 1-year old animals and five (5) 2-year-old animals. On July 1, two animals were born. On December 31, 2021, three (3) 2-year-old animals were sold. Fair value less cost of disposal per unit are shown below: 1-year old animal on January 1 500 1-year old animal on December 31 600 2-year-old animal on January 1 650 2-year-old animal on December 31 800 3-year-old animal on December 31 950 New born animal on July 1 300 New born animal on December 31 350 0.5-year-old animal on December 31 400AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had ten (10) 1-year old animals and five (5) 2-year-old animals. On July 1, two animals were born. On December 31, 2021, three (3) 2-year-old animals were sold. Fair value less cost of disposal per unit are shown below: 1-year old animal on January 1 500 1-year old animal on December 31 600 2-year-old animal on January 1 650 2-year-old animal on December 31 800 3-year-old animal on December 31 950 New born animal on July 1 300 New born animal on December 31 350 0.5-year-old animal on December 31 400