Elysee Company leased a Machine with a fair value of P1650000 for a period of 5 years under a nance lease. The initial direct costs included in negotiating the lease amounted to P12.500. The present value of the minimum lease payments discounted at rate implicit in the lease is P1,584,000. At what amount should the machine be recognized initially by Elysee Company? a. 1,650,000 b. 1,596,000 c. 1,662,500 d. 1,584,000