On January 1, 2016, Comforter Company sold equipment with a carrying amount of P800,000 to Cold Company. As payment, Cold gave Comforter Company a P1,200,000 note. The note bears an interest rate of 5% and is to be repaid in three annual installments of P400,000 (plus interest on the outstanding balance). The first payment was received on December 31, 2016. The market price of the equipment is not reliably determinable. The prevailingrate ofinterest for notes of this type is 10%.The interestincome to be recognized in 2017is a.P40,000b.P69,587c.P74,708d.P109,735 ANSWER: 74,708 NEED SOLUTION PLEASE