On December 31, 2019, a board resolution was approved for the accumulation of funds to be use for the expansion of the plant of Dali Naman Company. The resolution indicates that an amount of P10,000,000, which is approximately equal to the cost of expansion is to be accumulated within 5 years with the following contribution made at the start of the year: Year 1 P2,500,000, and for Year 2 to Year 5 will be equally depending on the amount needed to accumulate the needed funds after considering the return that the funds will earn from investment.

Required: Compute for the:

1. Amount of contribution to be made on January 1, 2021 assuming the return on investment 10%.
2. Income that the fund will earned on December 31, 2022 using a 10% return on investment.

Carrying value of the fund on December 31, 2023 using a 10% return on investment