YOU Company had a ₱6,000,000 notes receivable from ME Company due on December 31, 2019. The note bears 10% interest and yields 12%. The books reported accrued interest of ₱600,000 on this date. On the due date, because of financial distress being suffered by ME Company, YOU Company agreed to the restructuring and modification of the term as follows:

a. Reduction of Principal amount of 5,000,0000.

b. Reduction of interest to 8% payable annually beginning December 31,2020;

c. Effective interest rate as of date of restructuring is 14%.

d. Accrued interest on December 31,2019 was paid; and

e. Principal payment was reset to December 31, 2022.

REQUIRED:

1. How much is the impairment loss recognized by YOU Company on December 31, 2019?
2. At what amount should the restructured notes receivable be reported at December 31, 2020?