Problem 10: Sure Ka Dito Company is a dealer of candle-making equipment. On January 1, 2023, Sure Ka Dito Company sold a piece of equipment with a carrying amount of P2,800,000 in exchange for a noninterest-bearing note of P5,000,000 requiring a lump sum payment at the end of 5 years. The market interest for similar notes was 10%. The relevant present value factors are:

PV of 1 at 10% for 5 periods- 0.621

PV of an ordinary annuity of 1 at 10% for 5 periods- 3.791

PV of an annuity due of 1 at 10% for 5 periods- 4.169

How much is the interest income in 2023?

What is the carrying amount of the notes receivable on December 31, 2023?

What is the carrying amount of the notes receivable on December 31, 2024?