Problem A (2 points each) On January 1, 20x1, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 20x4. The prevailing rate of interest for this type of note is 12%. 1. How much is the interest income in 20x 1? 2. How much is the carrying amount of the receivable on December 31, 20x2? Problem B (2 points each) On January 1, 20x1, Mojo Co. sold transportation equipment with a historical cost of P20,000,000 and accumulated depreciation of P7,000,000 in exchange for cash of P500,000 and a noninterest-bearing note receivable of P8,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31 thereafter. The prevailing rate of interest for this type of note is 12%. 1. How much is the interest income in 20x1? 2. How much is the current portion of the receivable on December 31, 20x 1? 3. How much is the carrying amount of the receivable on December 31, 20x2? Problem C (2 points each) On January 1, 20x1, ABC Bank extended a P900,000 loan to XYZ, Inc. Principal is due on December 31, 20x5 but 12% interest is due annually every December 31. On December 31, 20x3, XYZ, Inc. was delinquent and it was ascertained that the loan is impaired. ABC Bank assessed that interests accruing on the loan will not be collected; however, the principal is expected to be received in three equal annual installments starting on December 31, 20x4. Accrued interest receivable on December 31, 20x3 amounted to P100,000. The current market rate on December 31, 20x3 is 14%. 1. How much is the balance of allowance for impairment loss on December 31, 20x3 immediately after impairment testing? 2. How much is the interest income in 20x5