25.Leaf Co. purchased from Oak Co. a P20,000, 8%, five-year note that required five equal annual year-end payments of P5,009. The note was discounted to yield a 9% rate to Leaf. At the date of...

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Extracted text: 25.Leaf Co. purchased from Oak Co. a P20,000, 8%, five-year note that required five equal annual year-end payments of P5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of P19,485. Leaf does not elect the fair value option for reporting its financial liabilities. What should be the total interest revenue earned by Leaf over the life of this note? Ans: 5,560