12. Problem Solving. AA Bank granted a loan application of Client BB on January 1, 20A for P1,000,000. The agreement requires the client to pay the full amount on December 31, 20D and the 12% interest, annually starting 20A. Of the P99,911, P35,083 is shouldered by AA and the rest was charged against its client. In effect, the new effective interest rate is increased by 1%. If BB will default from paying its annual interest due, AA will consider testing the financial asset for possible impairment. On December 31, 20B, how much should AA carry the financial asset in its book?