On January 1, 2021, Redman Co. issued P10,000,000, 10%, 10-year convertible bonds at 102. Without the conversion option, the bonds would sell at 11%. Each P1,000 bond is convertible into 50 of Redmans P10 par ordinary shares at the option of the holder On December 31, 2022, after the payment of the annual interest Redman retired bonds having a face value of P2,000,000 at 95. On this date, the bonds have a fair value of 92.5 without the conversion option. On December 31, 2023, after the payment of the annual interest, Redman retired bonds having a face value of P3,000,000 at 103. On this date the bonds have a fair value of 99 without the conversion option.On December 31, 2024, bonds with a face value of P4,000,000 were converted into shares. The remaining were bonds were retired on December 31, 2025 at par, after the payment of the annual interest. On this date, the bonds have a fair value of 98 without the conversion option. 1. Determine the equity component of the bonds upon issuance. 2. Compute for the gain or loss to be presented on Redmans profit or loss statement for the year ended December 31, 2022. 3. Compute for the gain or loss to be presented on Redmans profit or loss statement for the year ended December 31, 2023. 4. Compute for the interest expense recognized by Redman in 2024. 5. Determine the carrying amount of the liability transferred to equity on December 31, 2024. 6. Compute for the interest expense recognized by Redman in 2025