On January 1, 2011, SVTA Bank extended a P1,200,000 loan to ABC, Inc. Principal is due on December 31, 2015 but 11% interest is due annually every December 31. On December 31, 2013, ABC, Inc. was delinquent and it was ascertained that the loan is impaired. SVTA Bank assessed that interests accruing on the loan will not be collected; however, the principal is expected to be received in three equal annual installments starting on December 31, 2014. Accrued interest receivable on December 31, 2013 amounted to P132,000. The current market rate on December 31, 2013 is 13%. How much is the interest income in 2014?

Show your solution.