CASE 1: On September 1, 2021, AYE Company entered into one-year nonrenewable lease, commencing on that date, for an office space and made the following payments to XYZ Properties: Bonus to obtain lease - P 120,000 First month's rent -P 40,000 Last month's rent -P 40,000 The lease is considered "Short-term lease" in its income statement for the year ended Dec. 31, 2021. 1. What amount should AYE report as rent expense for the year ended, December 31, 2021? CASE 2: On January 1, 2021, BEE Corporation signed a 3-year operating lease for various office furniture and equipment at P300,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of P2,000,000. BEE's sales for the year ended Dec 31, 2021 were P2,500,000. Upon execution of the lease, BEE Corporation paid P100,000 as a bonus for the lease 2. What is BEE's rent expense for the year ended December 31, 2021 if the lease is considered a "Low value lease"? CASE 3: As an inducement to enter a lease, CEE Company, a lessor, grants ABC Management Corporation, a leaseholder, nine months of free rent under a two-year operating lease for its office furniture and equipment. The lease is effective on Feb. 1, 2021 and provides for monthly rental of P30,000 to begin November 1, 2021. 3. If the lease is considered "Low value lease", what amount of accrued rent should CEE Company report in its December 31, 2021 statement of financial position? CASE 4: On September 1, 2021, DHI Sound System Company leased office furniture and equipment at a monthly rental of P40,000 for 3 years expiring August 31, 2024. As an inducement for DHI to enter into lease, the lessor permitted DHI to use the asset rent-free from September 1 to November 30, 2021. 4. For the year ended December 31, 2021, how much TOTAL expense should DHl record related to the leased asset? The following information were deemed relevant regarding a sale and leaseback agreement GEE Corp. entered into with EYCH Inc. of a heavy factory equipment on January 1, 2021: Selling Price of the Equipment - P1,500,000 Fair Market Value - P1,200,000 Carrying value on the books of GEE Corp. - P720,000 Remaining life of the equipment - 10years Lease back term - 8years Implicit lease rate -12% Periodic annual rentals every December 31-P 200,000 Required: 17. What is the gain/loss to be recognized from the sale and leaseback agreement on the books of GEE Corp. (seller/lessee) on January 1? 18. What is the interest expense to be recognized in 2021? 19. What is the carrying value of the lease liability as of December 31, 2021? 20. What is carrying value of the right of use asset as of December 31, 2021