1. Jackeline Corporation is in the business of leasing new sophisticated computer systems. As a lessor of computers, it purchased a new system on December 31, 2021. The system was delivered the same day (by prior arrangement) to X Company, a lessee. The following information are related to the lease transaction: Cost of system to the company Estimated useful life and lease term Expected residual value (unguaranteed) The company's implicit rate of interest X's incremental borrowing rate Date of first lease payment P550,000 8 years P 40,000 12% 14% Dec. 31, 2021 Additional information is as follows: At the end of the lease, the system will revert to the company X is aware of the company's rate of implicit interest The lease rental consists of equal annual payments Question 5: The amount to be reported under current liabilities as liability under finance lease as of December 31, 2022 is P60,239 b. P48,611 c. P35,715 d. P64,963