Love International Corp. has renegotiated a restructuring of its 10%, P2 million unsecured note payable to BPI. BPI agreed to reduce the principal amount of the note to P1.65 million and extend the...

Love International Corp.has renegotiated a restructuring of its 10%, P2 million unsecured note payable to BPI. BPI agreed to reduce the principal amount of the note to P1.65 million and extend the due date three years from the date of restructuring. However, the interest rate was increased from 10% to 14%. The date of restructuring is on December 31, 2022. There is no unpaid interest on the restructured note at this time.

Based on the given information and the result of your audit, determine the following:

1. The amount to be recognized in profit or loss in relation to the modification of terms.


2. Interest expense in 2023.


3. Carrying amount of the note payable as of December 31, 2023?