3. Pagadian, Inc. reported the following during the year: P400,000 proceeds of life insurance of an officer where Pagadian is the beneficiary (P600,000 still uncollected.) P800,000 interest income, exclusive of P200,000 uncollected and accrued interest P300,000 increase in value of investment in stocks Compute the gross income under cash basis. a. P 800,000 b. P1,000,000 c. P1,200,000 d. P1,400,000 4. Compute the gross income under accrual basis. 000,008 c. P1,200,000 d. P1,400,000 a. P800,000 b. P1,000,000 5. Dapitan, Inc. has the following receipts during 2021: From service billings to clients Advances from clients Total cash collection The P100,000 advances refer to services which will be rendered next year. Total uncollected billing increased from P100,000 on December 31, 2020 to P150,000 on December 31, 2021. Compute the gross income using cash basis. c. P500,000 d. P550,000 a. P400,000 b. P450,000 P 400,000 100.000 P 500,000