1. On January 1, 2019, Happy Co. entered into a 10-year lease for equipment. The acquisition was accounted for as a finance lease for P4,900,000 which includes a P200,000 guaranteed residual value. At the end of the lease, the asset will revert back to the lessor. It is estimated that the asset's fair value at the end of its 12-year life will be P100,000. SMB Co. regularly uses the straight-line depreciation on similar equipment. What is the carrying value of the leased asset on December 31, 2019?
2. On June 1, 2018 Sadness Corp. entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to the lessor: Bonus to obtain lease for P300,000; First month's rent for P100,000 and Last month's rent for P100,000. Compute the total rent income for 2018.
3. On January 1, 2018 ABC Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies a rent of P20,000 per month. The lessor paid initial direct cost of P6,000 and incurred insurance and property tax expense in 2018 totaling P30,000. The depreciation of the office is P30,000. How much is the net income to be recognized by the lessor as a result of this lease in 2018?