Cheesy Company is an equipment dealer. At the beginning of current year, an equipment was leased to another entity with the following information: Annual rental payable at the end of each year 2,880,000 Lease Term and Useful Life of Equipment 5 years Cost of Equipment 7,500,000 Residual Value- unguaranteed 1,000,000 Implicit interest rate 12% PV of an Ordinary Annuity of 1 for 5 periods at 12% 3.60 PV of 1 for 5 periods at 12% 0.57 At the end of the 5 year lease term, the machinery shall revert to Cheesy Company. Cheesy Company incurred initial direct cost of P300,000 in finalizing the lease agreement

1. What amount should be reported as total unearned interest income? __________________

2. What amount should be reported as gross income on sale? __________________

3. What amount should be reported as interest income for current year? ________________