For items 7 and 8, please refer to the following information: On January 1, 2021, ABC Company obtained a 5-year, P1,000,000 variable-rate loan with interest payments due at each year-end and the principal due on December 31, 2025. As protection from possible fluctuations in current market rates, ABC enters into an interest rate swap for the whole principal of the loan. Under the agreement, ABC shall receive variable interest and pay fixed interest based on a fixed rate of 8%. Swap payments shall be made at each year-end. The following are the current market rates: January 1, 2021 8% January 1, 2022 9% January 1, 2023 12% 7. How much is the fair value of the interest rate swap on December 31, 2021? Indicate whether it is a derivative asset or liability. (5 pts.) 8. How much is the fair value of the interest rate swap on December 31, 2022? Indicate whether it is a derivative asset or liability. (5 pts.)