Case 1: On January 1, 2021, South Star Company entered into a 10-year lease of a floor of building with useful life of 15 years. The lease provided for neither a transfer of title to the lessee nor a purchase option. The annual lease payment is P200,000 payable at the end of each year with annual escalation of 5% up to 5th year. Beginning the 6th Year, the annual lease payment shall be P300,000 still payable at the end of each year. The borrowing rate of the lessor is 10% while 12% for the lessee. The lessor incurred P600,000 during the negotiation of the contract and preparation of the lease while 50% was reimbursed by the lessee. When present value is needed, round off the present value factor to two decimal places. a. What is the carrying amount of the right of use asset as of January 1,2021 ? b. What is the carrying amount of the lease liability as of January 1,2021 ? c. What is the carrying amount of the right of use asset as of December 31,2023 ? d. What is the carrying amount of the lease liability as of December 31, 2023? e. What is the depreciation expense to be recognized in 2027 ? f. What is the interest expense to be recognized in 2027