On January 1, 2019, an entity leased an equipment by making five annual payments of P1,500,000 beginning January 1, 2019. At the end of the lease term, December 31, 2023, the entity guaranteed the residual value of the equipment at P1,000,000. The lease qualified as finance lease. The interest rate implicit in the lease 10% and present value factors at 10% for 5 periods are 4.17 for an annuity due, 3.79 for an ordinary annuity and 0.62 for present value of 1. On January 1, 2019, an entity leased an equipment by making five annual payments of P1,500,000 beginning January 1, 2019. At the end of the lease term, December 31, 2023, the entity guaranteed the residual value of the equipment at P1,000,000. The lease qualified as finance lease. The interest rate implicit in the lease 10% and present value factors at 10% for 5 periods are 4.17 for an annuity due, 3.79 for an ordinary annuity and 0.62 for present value of 1