Doug Company entered into a five year lease on an apartment date December 31, 2020. Lease payment of P580,000 that includes executory cost of P40.000 is to be paid annually starting December 312021. The present value of the cost of restoring the underlying asset to its original condition is P350,000. The implicit interest rate of the lease is 8%. The present value of an ordinary annuity of 1 for five years at 8% is 3.99 What amount should be reported as lease liability on December 31, 2020? a. 2,154,000 b. 2,154,600 c. 2,155,000 d. 2,155,600 Using information above, What is the cost of the right of use asset? a. 2,504,600 b. 2,505,000 c. 2,506,600 d. 2,507,600