Please SHOW COMPLETE SOLUTIONS

1. On December 31, 2015, Naruto company sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The rst payment was made on December 31, 2015. The market interest for similar notes was 8%. {Use two decimal points] The interest income to be reported in the 2018 income statement is a. 102,992 b. 81,500 c. 132,358 d. 145, 192 2. On December 31, 2015, Shikadai company sold used equipment and received a noninterest bearing note requiring payment of P500,000 annually for ten years. The first payment is due December 31, 201? and the prevailing rate of interest for this type of note at date of issuance is 12%. {Use three decimal points} The unearned interest income at December 31, 2018 is 3. 1,218,120 b. 2,515,180 c. 2,483,820 d. 1,515,180 3. On January 1, 2015, Tobirama company sold to NE company land and received a note with a face amount of P5328500. The note shall be collected in six equal annual installments starting December 31, 2015 to include interest at 8% {to be based on the unpaid balance]. The annual installment to be received by Tobirama company is a. P953000 b. P501000 c. P1,250,000 d. P1,528,280