PROBLEM 1ABC Company holds debt securities within a business model whose objective is achieved bothby collecting contractual cash flows and selling the debt securities. The contractual cash flowsare solely payments of principal and interest on specified dates.The following amortization schedule relates to its 5-year, P1,000,000 7% bonds purchased on December 31, 2019 for P1,086,565. The bonds were purchased to yield 5% interest.DateInterest receivedInterest incomePremium amortizationAmortized 12.31.191,086,56512.31.2070,00054,32815,6721,070,89312.31.2170,00053,54516,4551,054,43812.31.2270,00052,72217,2781,037,16012.31.2370,00051,85818,1421,019,01812.31.2470,00050,98219,0181,000,000