Problem 9. Impairment of Investment in Debt Securities at Fair Value Through OCI On January 1, 2017, Tins Corporation purchased 4-year P8,000,000 10% bonds dated December 31, 2016. Interest is payable annually every December 31. Tins Corporation designated the bonds as financial asset at fair value through OCI. The issuer paid the interest as scheduled in 2017. During 2018, the issuer of the bonds is in financial difficulties and it becomes probable that the issuer will be put into administration by a receiver. On December 31, 2018, Tins estimated that none of the interest will be collected and only P6,000,000 of the principal will" be collected on maturity date. No cash flows were received during 2019. At the end of 2019, the issuer is released from administration and Tins received a letter from the receiver stating that the issuer will be able to meet its remaining obligations on maturity, including interest and repayment of principal. The table below provides information regarding the prevailing market interest rate. Date Rate January 1, 2017 12% December 31, 2017 13% December 31,2018 14% December 31,2019 11 Requirements: Based on the above and the result of your audit, determine the following: (Round off present value factors to four decimal places) 1. Carrying amount of the bonds on December 31, 2017? 2. Net unrealized loss in accumulated other comprehensive income in equity as of December 31, 2017? 3. Impairment loss to be recognized in 2018 profit or loss? 4. Interest income in 2019? 5. Net unrealized gain in accumulated other comprehensive income in equity as of December 31, 2019