ABC Company issued ten-year P1,000,000 interest bearing Promissory Note at the beginning of the 2022. The note pay interest semiannually on June 30 and December 31. The carrying amount of the note January 1, 2022 was P886,000. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for P53,160 and crediting cash for P50,000. What is the annual realistic interest rate for the promissory note? Answer: 12% On December 31, 2022, what is the present value of the promissory note issued by the entity? Answer: 892,510

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