No. -6 Assume the following: FINANCE LEASE, LAND and BUILDING 1. The lessee enters into a ten-year noncancelable lease for a parcel of land and a building for use in its operations. The building has an estimated useful life of 12 years. 2. The FMV of the land is P75,000, while the FMV of the building is P310,000. 3. A payment of P50,000 is due to the lessor at the beginning of each of the 10 years of the lease. 4. The lessee's incremental borrowing rate is 10%. (Lessor's implicit rate is unknown.) 5. Ownership will transfer to the lessee at the end of the lease. 15. Under Accounting for land and building lease containing transfer of title, prepare the journal entry. 16. Accounting for land and building lease without transfer of title or bargain purchase option. Assume the same facts as in the previous example except that title does not transfer at the end of the lease. Prepare the journal entry. 17. Accounting for land and building lease without transfer of title or bargain purchase option Assume the same facts as in the previous example except that the FMV of the land is P110,000 and the FMV of the building is P275,000. Once again, title does not transfer. Prepare the journal entry