CASE 9 Dalgona Company had the following transactions related to your audit procedures in audit of its long term liabilities: Note payable from purchase of equipment A 8% note was issued June 1, 2021 due in 4 years. The principal and interest are payable every April 30 of each year. The first payment is to be made on May 31, 2022. The note is payable as follows: May 31, 2022 May 31, 2023 P500,000 400,000 May 31, 2024 May 31, 2025 May 31, 2026 300,000 200,000 100,000 Page 10 The interest effective when the note was issued is 10%. Your test of journal entries revealed that the note is reported in its unaudited financial statement at face value which is also the amount recognized initially for the equipment purchased and no adjusting entry was made on December 31, 2021 related to this note. Note payable from purchase of land Dalgona Company purchase land on January 1, 2021 by issuing a 3-year, non-interest bearing note with face value of P3,500,000. The notes effective interest on this date is at 7%. Dalgona recorded the note payable at face value and no interest expense is recognized on the same note. Determine the following as a result of your audit: 41. How much is the correct total interest expense in 2021 statement of comprehensive income? a. P284,100 b. P324,610 c. P344,177 d. P351,560 42. How much is the total amount of note receivable reported in the non-current liability section of Dalgona's 2021 statement of financial position? a. P4,237,055 b. P4,200,671 c. P4,102,898 d. P4,032,748 43. How much is the correct total interest expense in 2022 statement of comprehensive income? a. P300,826 b. P310,595 c. P320,893 d. P330,421