2. BaBa Black Sheep (BBS) Company loaned HowHow de Carabao (HDC) Company P7,500,000 on January 1, 2012. The terms of the loan were payment in full on January 1, 2016 plus annual interest payment at 11%. The interest payment was made as scheduled on January 1, 2013. However, due to financial setbacks, HDC Company was unable to make the 2014 interest payments. BBS Company considered the loan impaired and projected the cash flows from the loan on December 31, 2014. The bank accrued the interest on December 31, 2013, but did not continue to accrue interest for 2014 due to impairment of the loan. The projected cash flows are: Date of cash flow Amount projected on December 31, 2014 500,000 1,000,000 2,000,000 4,000,000 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 Page Q + The PV of 1 at 11% is 0.90 for one period; 0.81 for two periods; 0.73 for three periods; and 0.66 for four periods. Required: I a. What is the loan impairment loss on December 31, 2013? b. What is the interest income for 2015? c. What is the carrying amount of the loan receivable on December 31, 2015?