Eusebio Company lease equipment with a ten-year useful life, from Dizon Company on January 1, 2019 for an eight-year period expiring December 31, 2027. Equal annual payments under the lease are P800,000 and are due on January 1 of each year. The first payment was made on January 1, 2019. The rate of interest contemplated by Eusebio and Dizon is 8%. The cash selling price of the equipment is P4,965,000 and the cost of the equipment on Dizons accounting records was P4,200,000. The lease provides for a bargain purchase option on the part of the lessee upon the lease expiration. What total amount of expense should Eusebio recognize for the year ended December 31, 2019? A . 953,825 B. 893,700 C. 829,700 D. 496,500

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