Problem 6-11 (IAA) Persevere Company is a dealer in equipment. On December 31, 2020, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2021. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for 5 periods 3.99 1. On December 31, 2020, what is the carrying amount of note receivable? a. 2,500,000 b. 1,995,000 c. 1,700,000 d. 1,495,000 2. What amount of interest income should be reported for 2021? a. 505,000 b. 101,000 c. 159,600 d. 119,600 3. What is the carrying amount of the note receivable on December 31, 2021? a. 1,654,600 b. 2,154,600 c. 2000,000 d. 1,495,000 4. What amount of interest income should be reported for 2022? a. 132,368 b. 172,368 c. 160,000 d. 20 100 182