On Jan. 1, 2022 Vis Co leased a building from a lessor with the following information: Annual rental payable at year-end 1,250,000.00 Initial direct cost paid (including P125,000 brokers 500,000.00 commission that arranged the lease) Lessor's reimbursement for brokers commission paid by the 125,000.00 lessee Leasehold improvements 250,000.00 Purchase option that is reasonably certain to be exercised 625,000.00 Lease term 5 years Useful life of building 8 years Implicit interest rate 10% PV of ordinary annuity of 1 @ 10% for 5 periods 3.79 PV of 1 at 10% for 5 periods 0.62 REQUIRED: 1. 2022 Depreciation expense 2. Dec. 31, 2022 lease liability