Bayview Corp is engaged in leasing equipment. The equipment was delivered to the lessee at the beginning of 2021 under a direct financing lease with the following provisions: Cost of equipment P 4,361,200 Unguaranteed residual value 200,000 Useful life of the equipment 8yrs Term of the Lease 8yrs Implicit interest rate 10% PV of an ordinary annuity for 1 for 8 years @10% 5.335 PV of 1 for 8 years @10% 0.466 The annual rental is payable at the end of each year. The equipment will revert to the lessor upon the lease expiration. a. What is the net investment in the lease to be recovered from rental? b. Q2. What is the annual rental over the lease term? c. What amount of interest income should be recognized for the current year?