On January 1, 2019, Tuba Co. acquired a 5-year bonds with a face value of P5,000,000 and stated interest of 12% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds are to be appropriately classified as financial asset at amortized cost.

On December 31, 2020, after receiving the interest, the issuer of the financial instrument is in financial difficulties and it becomes probable that an impairment loss should be recognized. The company assesses that only the principal amount will be received on the maturity date. The present value of the future cash flows based on the existing current rate of 11% is P3,655,957. The present value of the expected cash flows for the remaining period using 10% is P3,756,574.

On December 31, 2019, the financial condition of the borrower has improved and that it can pay its unpaid obligation including principal and interest at maturity. The prevailing rate of interest on this date is 8%. The present value of expected cash flows based on this rate is P5,829, 904. The present value of expected cash flows for the remaining period using 10% is P5,619,835.

Based on the above data, answer the following assuming the investment is accounted under PFRS 9:

1.) How much is the purchase price of bonds on January 1, 2019?

2.) How much is the interest income for 2019?

3.) How much is the interest income for 2020?

4.)How much is the interest income for 2021?

5.) How much gain on reversal of impairment loss to be recognized in the profit or loss in 2021?*