On January 1,21, West Company issued 9% bonds in the face amount of P5,000,000, which mature on January 1,2031 . The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31 . The entity used the interest method. 1. What is the interest expense for 21 ? a. 450,000 b. 469,500 c. 422,550 d. 500,000 2. What is the carrying amount of the bonds payable on December 31,21 ? a. 4,695,000 b. 4,704,750 c. 4,714,500 d. 5,000,000