At the beginning of the year, Paso Co leased a building from a lessor with the following pertinent information:

Annual rental payable at the end of each year - P1,000.000

Initial direct cost paid - P400.000

Lease incentive received - P100.000

Leasehold improvement - P200.000

Purchase option - P500.000

Lease term - 5 years

Useful life of building - 8 years

Implicit interest rate - 10%

PV of an ordinary annuity of 1 for 5 years at 10% - 3.79

PV of 1 for 5 periods at 10% - 0.62

REQUIRED (Assuming purchase option is reasonably certain to be exercised?

1. Cost of right of use asset?

2. Depreciation for the year?

3. Interest expense for the year?

4. Non-current lease liability at year-end?