2:15 58%i Scuba Company leased equipment from Island Hopping Inc. on January 1, 2022, for an 8-year period. Equal payments under the lease are P1,000,000 and are due on July 1 of each year. The first payment was made on January 1, 2022. The interest rate contemplated by Scuba and Island Hopping is 10%. The cost of the equipment on Island Hopping's accounting records is P2,500,000. Residual value of P100,000 at the end of lease term is unguaranteed by Scuba. The lease is appropriately recorded as a dealer's lease. Present value of an annuity of 1 in advance for 8 periods at 10% 5.87 Present value of an ordinary annuity of 1 for 8 periods at 10% 5.33 Present value of 1 for 8 periods at 10% 0.47 How much is the cost of sales that Island Hopping should recognize for the year 2022? 5,870,000 5,917,000 2,500,000 2,453,000 ||| #