Extracted text: management, Tagaytay Highlands Company had negotiated a restructuring of an 8% P6,000,000 note payable to Second Due to adverse economic circumstances and poor Bank due on January 1, 2021. There was no accrued interest Bank due on January 1, 2021. There was no accrued interest on the note on January 1, 2021. The bank reduced the principal obligation from P6,000,000 to P5,000,000 and extended the maturity to three years on December 31, 2023. However, the new stated interest rate is 12% payable annually every December 31. The present value of 1 at 8% for three periods is .79 and the present valuè of an ordinary annuity of 1 at 8% for three periods is 2.58. The market rate of interest is 10%. The PV of 1 at 10% for 3 periods is 0.75 and the PV of an ordinary annuity of 1 at 10% for 3 periods is 2.49. 1. What amount should be reported as present value of the new note payable on January. 1, 2021? a. 6,000,000 b. 5,000,000. c. 5,498,000 d. 5,244,000 2. What amount of gain on modification of debt should be recognized for 2021? 756,000 b. а. 600,000 502,000 d. с. 3. What amount should be recognized as interest expense for 2021 as a result of the modification? a. 600,000 b. 480,000 c. 439,840 .d. 524,400