show complete solutions. This is a multiple choice question.

1. On July 1, 2019, North purchased P1300300 of West Company's 8% bonds due at July 1, 2029. North expects to hold the bond until maturity. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for P875300 to yield 10%. In its income statement for the year ended December 31, 2019, North should report interest income at? a. P40300 b. P43,750 c. P35300 d. P50300 2. On January 1, 2019, Shine Company purchased a 6year bond with a face amount of P4500300 to yield 13%. Interest is to be paid every December 31 while the principal is to be repaid on maturity. The maturity date of the investment is on January 1, 2025. An active market is available so there is no problem to ascertain the fair value of the bonds. The stated rate ofthe bond is 9%. On December 31, 2019 the bond is trading at 12% for P4,013,355; on December 31, 2020 the bond is trading at 11.75% for P4,122,140; on December 31, 2021 the bond is trading at 14% for P3377330; and on December 31, 2022 the bond is trading at 13.75% for P4,146,890. Use four decimal places only. If the investment is accounted under FVTOCI, what amount of interest income is recorded for the year ended December 31, 2021? a. P515,389 b. P451498 c. P502389 d. P468326