A. On January 1, 2018, Vctr Incorporated issues a three-year 9% bond with a face value of P 3,600,000 at a price that will yield an 8% effective interest rate.

The bond will mature at an amount equivalent to P1,200,000 annually at the end of each year. Annual interest payments are made together with the principal.

1. Determine the total amount received by Vctr as a result of the issuance. Round off final answer to nearest peso.
2. Determine the current portion of the bonds payable on December 31, 2018. Round off final answer to nearest peso.

B. Michelle's Company has an incentive compensation plan where department supervisors can receive a bonus. The bonus is equally to 12% of department income after bonus and after tax. The tax rate is 30%

Compute for the bonus assuming the department income is P 1,850,000 before bonus and tax. Round off final answer to nearest peso.