On March 1, 2015, Cain Company issued at 103 plus accrued interest 4,000 of 9%, P1,000 face value bonds. The bonds are dated January 1, 2015 and mature on January 1, 2029. Interest is payable semiannually on January 1 and July 1. The entity paid bond issue cost of P200,000. Issuance Price is P3,980,000.

1. Compute for the carrying amount of the bonds as of December 31, 2020?

2. Assuming that half of the bonds were retired at 95 on March 1, 2021, compute for the carrying amount of the bonds as of March 1, 2021.

3. Assuming that half of the bonds were retired at 95 on March 1, 2021, compute for the retirement price on March 1, 2021.

4. Assuming that half of the bonds were retired at 95 on March 1, 2021, compute for the gain or loss on retirement.