On January 2, 20Y2, Up company acquired P9,000,000, 12% serial bonds. The bonds were purchased to yield 10%. The principal is collectible in three equal annual installments beginning December 31, 20Y2. Up Company holds investment in bonds to collect contractual cash flows that are solely principal and interest. Carrying amount of the investment on December 31, 20Y3. 3,054,323 3,000,000 3,223,539 4,069,329