a.) Royal Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 8% payable annually starting December 31, 2019. The loan matures in five years on December 31, 2023. The data related to the loan are: Principal amount P3,000,000; Direct origination cost incurred P160,920; Origination fee received from borrower P300,000; Indirect origination costs incurred P35,000; The effective rate on the loan after considering the direct origination cost and origination fee received is 12%.What is the initial carrying amount of the loan receivable on January 1, 2019?

b.) Using the problem with Royal Bank, what is the interest income for the year 2020

c.) On January 1, 2019, Aquarius Co. sold a machine with a cost of P500,000 for P800,000. The buyer paid a down of P200,000 and signed a noninterest bearing note for P600,000 payable in equal annual installment of P200,000 every December 31. The prevailing interest rate for a note of this type is 10%. The present value of an ordinary annuity of 1 for three periods at 10% is 2.4869. How much is the gain on sale of the machine

d.) Cancer Co. owned a track of land costing P1,600,000 and sold the land for P2,000,000. The entity received a 3-year note for P2,000,000 plus interest of 6% compounded annually. How much interest income should be recognized in the second year?

e.) On January 2, 2019, Grey Company received an P800,000, 8%, 2 year note from Black Corporation as settlement for an outstanding past due account. The interest is payable every December 31 and the interest due in 2019 were collected on time. In 2020, Black Corporation was in financial crisis, and as a result of this development, Grey Company expects that the interest for 2020 will not be collected and that only P600,000 of the principal amount will be collected in equal annual installment over the next three years starting December 31, 2021. As of December 31, 2020, the market rate of interest for a similar instrument is 9% (PV of an annuity for 3 years at 9% is 2.577) What amount of impairment loss should Grey Company recognize on December 31, 2020 related to its notes receivable?