ABC Co sells a building to DEF Company. At the same time, ABC Company enters into a contract with DEF Company for the Right to use the building. Relating to the Sale and Lease Back are as follows:

Selling Price	P2,000,000
Carrying Amount	P1,000,000
Annual Lease Payment	P120,000
Implicit Rate	4.5%
Lease Term	18 years
PV Factor rounded to 2 decimal places
Percentage 6 decimal places

Required:

1. Assume the Fair Value of the Leased asset is P2,000,000, how much is the Gain on Rights Transferred?

2. Assume the Fair Value of the Leased asset is P1,800,000, how much is the Gain on Rights Transferred?

3. Assume the Fair Value of the Leased asset is P2,100,000, how much is the Gain on Rights Transferred?

4. Assume the Fair Value of the Leased asset is P2,100,000, how much is the rent income for the year to be reported assuming the transaction called for an operating lease?