Extracted text: 3. What is the carrying amount of the modified note payable P500,000. The entity is granted by the creditor in a debt note payable of P5,000,000 and accrued interest payable of On January 1, 2021, Kingdom Company had an crerdue 10% note payable of P5,000,000 and accrued interest payable : restructuring agreement the following concessions: a. Accrued interest of P500,000 is forgiven. b. The new interest rate is 14% payable annually every December 31. c. The new maturity date of the note is December 31, 2024. d. The entity paid P290,000 to the creditor as arrangement fee or modification cost. e. Considering the effect of the modification cost or arrangement fee, the new'effective interest rate is 12%. f. The market rate of interest for similar note is 9%. 9% 10% 12% PV of 1 for 4 periods PV of an ordinary annuity of 1 for 4 periods 0.71 0.68 0.64 3.24 3.17 3.04 1. What amount of loss on modification should be recognized for 2021? 409,000 b. 119,000 291,000 d. а. с. 2. What amount should be reported as interest expense for 2021? а. 700,000 b. 632,900 c. 561,900 d. 639,480 on December 31, 2021? a. 5,268,480 b. 5,480,900 c. 5,329,000 d. 5,000,000