On January 1, 2019, Baby Co. purchased a 10-year 9% P1,000,000 bonds of Lakay Inc. for an amount resulting to a yield rate of 10%. Interest is collected by Baby every December 31. The effective rate of the bonds on December 31, 2019 is 8%; 12% on December 31, 2020; and 11% on December 31, 2021. Note: use four decimal places for PV factors (i.e. xxxxx) Requirements: Case 1 - The company carried the investment at amortized cost, then subsequently reclassified the investment at fair value through other comprehensive income on December 31, 2020. 1. What is the interest income for 2020? 2. What is the carrying value of the investment as of December 31, 2020? 3. What is the carrying value of the investment as of January 1, 2021? How much is the gain or loss on reclassification to be presented in the income statement? 4. How much is the unrealized gain or loss to be presented as a component of other comprehensive income for 2021? 5. How much is the unrealized gain or loss to be presented in the statement of financial position as of December 31, 2021