4. On January 01, 2012, PC Options sold equipment to PC Madness and simultaneously leased it back. Pertinent information at this date are presented below. In the initial entry upon leaseback, how much is the gain to be recognized by the buyer-lessor? * Sales price Fair value Carrying amount Annual rental payable at the end of each year Remaining life Lease term Interest rate on the lease contract Borrowing rate of PC Options Borrowing rate of PC Madness a. P800,000 b. P720,000 c. P400,000 d. P717,780 P 9,000,000 8,000,000 7,200,000 600,000 20 4 12% 11% 10.50% 2 points