On January 1, 2018, Karen Company sold an office equipment with a cost of Php 1,000,000 and accumulated depreciation of Php 150,000 in exchange for a 3-year 10% Php 2,000,000 note receivable. Principal is due on December 31, 2020 but interest is due annually every July 1 and December 31. The prevailing interest rate for this type of note is 12%.

Required: Based on the above data, compute for the following:

1. How much is the gain or loss on sale of office equipment in 2018?

2. How much is the interest income for 2018?

3. How much is the carrying amount of the note on December 31, 2018?

4. How much is the current portion of the note on December 31, 2018?

5. How much is the non-current portion of the note on December 31, 2018?