On August 1, 2020, Corvus Glaive Co. leased a tablet from Proxima Midnight Company for a period of one year. The rentals are payable at the beginning of each month starting August 1, 2020. The lease agreement called for the first 6 months' rental to be P5,000 per month while the last 6 months' rental to be P6,000 per month.

1. What is the lease expense for the year ended December 31, 2020? A. 25,000 B. 27,500 C. 30,000 D. 33,000

2. What amount shall be reported as operating lease payable on December 31, 2020? A. 0 B. 2,500 C. 3,000 D. 8,000

with solution