7. On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of P40,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bond proceeds were P190,280 based on the present values at December 31, 2019 of the five annual payments. In its December 31, 2020 statement of financial position, at what amount should Ulster report the carrying amount of the bonds?

8. Mauban Company has outstanding a 7%, 10-year P10,000,000 face value bond. The bond was originally sold to yield 6% annual interest. Mauban uses the effective interest method to amortize bond premium. On January 1, 2020, the carrying amount of the outstanding bond was P10,500,000. What amount of unamortized premium on bond should Mauban report in its December 31, 2020, statement of financial position?