On January 1, 2020 ABC Co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost.

1. Compute for the carrying value on December 31, 2021.
2. Compute for the interest Expense 2020.