On December 31, 2018, Karen Company leased equipment with a cost of Php 900,000 to Klaire Company for 4 years which is also the useful life of the asset. The lease agreement specifies equal annual payment of Php 251,600 beginning December 31, 2018. On the same date, Karen Company paid Php 24,128 incremental costs that are directly attributable to negotiating and arranging a lease. At the end of the lease term, the equipment will revert to Karen Company. The rate implicit on the lease is 8% but after considering the initial direct cost, the implicit rate is adjusted at 6%. Required: Based on the above, answer the following: 1. How much is the total interest income to be earned over the lease term? 2. How much is the total interest income in 2019? 3. How much is the leased related asset to be shown as current in the statement of financial position on December 31, 2018?