Cozy Bank loaned a borrower P7, 500,000 on January 1, 2012. The terms of the loan were payment in full on January 1, 2017, plus annual interest payment at 12%. The interest payment was made as scheduled on January 1, 2013. However, due to financial setbacks, the borrower was unable to make the 2014 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2014. The bank accrued the interest on December 31, 2013, but did not continue to accrue interest for 2014 due to the impairment of the loan. The projected cash flows are: 1. Compute the present value of the loan receivable on December 31, 2014. 2. Compute the impairment loss on the loan receivable. 3. Prepare journal entries for 2014, 2015 and 2016