Problem 24-11 (IAA) On January 1, 2020, the city government agreed to provide Probity Company with a P5,000,000 three-year, pero interest loan evidenced by promissory note. The prevailing rate of interest for a loan of this type is 10% and the present value of 1 st 10% for three years is.75. 1. What is included in the journal entry to record the loan and grant? 3. Debit discount on note payable P1,250,000 b. Credit deferred grant income P1,250,000 c. Credit note payable P5,000,000 d. All of these are included in the journal entry. 2. What is the interest expense for 2020? a 500,000 b. 375,000 c. 125,000 d. 750,000 3. What is the deferred grant income on December 31, 2020? a. b. G. d. 750,000 875,000 500,000 375,000 4. What is the carrying amount of the note payable on December 31, 2021? a. 5,000,000 b. 4,250,000 c. 4,125,000 d. 4,537,600