ABC Limited borrows $$100,000$ from a bank on the following terms:

Arrangement fees of $$2,000$ are charged by the bank and deducted from the initial

proceeds on the loan;

Interest is payable at $5\%$ for the first three years of the loan and then increases to $7\%$ for the remaining two years of the loan;

The full balance of $$100,000$ is repaid at the end of year $5$

Required:

What interest should be recognised in the statement of comprehensive income for each year of the loan?

If Isabelle Limited repaid the loan after three years for $$100,000,$ what gain or loss would be recognised in the statement of comprehensive income?