1.On January 1, 2020, an entity leased a machinery with the following data: Annual rental payable at the end of each year for P80,000 with a lease term for 6 years and with an implicit rate of 7%. On January 1, 2023, the entity and the lessor agreed to amend the original terms of the lease by reducing the lease payment to P70,000 and increasing the implicit rate to 9%. Compute for the interest expense to be recognize on January 1, 2023.

2.On January 1, 2016, an entity entered into a four-year operating lease. The payments were as follows: P20,000 for 2016; P18,000 for 2017; P16,000 for 2018 and P14,000 for 2019. What is the correct amount of lease expense for 2019?

3.On July, 2016 an entity leased a delivery truck to ABC company corp. under a 3-year operating lease. Total rent for the term of the lease will be P360,000 payable as follows: 12 months at P5,000 (total of P60,000); 12 months at P7,500 ( total of P90,000); 12 months at P17,500 (total of P210,000). All payments were made when due. In ABCs' June 30, 2018 statement of financial position, the accrued rent receivable should be reported at