Raine Corporation has the following information in the statement of realization and liquidation for the month of July:

Assets to be realized

406,500

Assets realized

485,600

Liabilities to be paid

380,000

Liabilities paid

290,000

The only transactions ascertained for the month of July are credit sales P38,000 and payment of accrued interest payable. All noncash assets are sold and collected during the month.

Furthermore, a cash balance of P10,000 is presented in the statement of financial position of Raine Corporation at July 1, 2016. The estate equity at July 31, 2016 is P97,600.

How much is the interest expense for the month of July?

• a. 18,000
• b. 87,100
• c. 56,000
• d. 8,000