Life Bank loaned Assurance Company P8,000,000 on January 1, 2016. The terms of the loan were payment in full on January 1, 2022 plus annual interest payment at 10%. The interest payment was made as scheduled on January 1, 2017. However, due to financial setbacks, Assurance was unable to make its 2018 interest payment. Life considers the loan impaired and estimated the cash flows from the loan as of December 31, 2018. The bank accrued the interest on December 31, 2017, but did not continue to accrue interest due to its uncollectibility. As of December 31, 2018 projected cash flows are:

Date of cash flowAmount projected as of Dec. 31 2018January 1, 2019 1,000,000

January 1, 2020 1,500,000

January 1, 2021 2,500,000

January 1, 2022 3,000,000

By rounding off your present value factors to two decimal places, answer the following questions:

1. What is the loan impairment loss on December 31, 2018?
2. What is the interest income to be reported by Life Bank in 2019?
3. What is the carrying amount of this loan receivable on December 31, 2020?
4. What is the interest income to be reported by Life Bank in 2019?
5. What is the carrying amount of this loan receivable on December 31, 2020?