Zephyr Corporation is provided a grant by a foreign government for the purpose of acquiring land for a building site. The grant is a zero-interest loan for 5 years evidenced by a promissory note.

The loan was granted on January 1, 2020 for P8,000,000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is 0.7473.

Assume that interest expense and grant income are not offset against each other, determine:

1.) Amount of interest expense reported in 2022

2.) Amount of grant income realized in 2023

3.) Amount of deferred grant income as of December 31, 2024