On January 1, 2020, the Blue Company issued P4,000,000 bonds.The bonds pay interest annually at 12% on the outstanding balance. The face value of the bonds is payable in installments of P1,000,000 every December 31, starting December 31,2020. The bonds were sold at a price that yields 8%. (7.5%) ( 3 items @2.5 points each)

Q22What amount of premium on bonds payable is recognized on January 1, 2020?

Q23What is the amount of interest expense and bond premium amortization, respectively for 2020?

Q24What is the bond's carrying value at December 31, 2021?