On December 31, 2020, Flounder Company acquired a computer from Plato Corporation by issuing a $557,000 zero-interest-bearing note, payable in full on December 31, 2024. Flounder Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $63,000 salvage value.

Anxious Company acquired two items of machinery. On December 31, 2020, Anxious Company purchased a machine for non-interest bearing note requiring ten payments of P500,000. The first payment was made on December 31, 2021, and the others are due annually on December 31.  The prevailing rate of interest  for this type of note at date of issuance was 12%. The present value of ordinary annuity of 1 @ 12% is 5.33 for nine periods and 5.65 for ten periods. On December 31, 2020, Anxious Company acquired used machinery by issuing the seller a two-year, noninterest bearing note for P3,000,000. In recent borrowing, the entity has paid a 12% interest for this type of note. The present value of 1 @ 12% for 2 years is 0.80 and the present value of an ordinary annuity of 1 @ 12% for 2 years is 1.69. What is the total cost of machiery?

Kalibo Bank loaned P5,000,000 to Caticlan Company on January 1, 2021. The terms of the loan require principal payments of P 1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1, 2021. Caticlan Company made the required payments during 2022 and 2023. However, during 2023 Caticlan Company began to experience financial difficulties, requiring the Kalibo bank to reassess the collectibility of the loan. On December 31, 2020, the Kalibo bank has determined that the remaining principal payment will be collected as originally scheduled but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on Dec. 21, 2023. Present value of 1 at 8%:For one period     0.93For two periods   0.86 For three periods  0.79 1. What is the impairment loss for 2023?2. What is the interest income for 2024?3. What is the carrying amount of the loan receivable on December 31, 2024?