On January 1, 2019, Obliviate Company entered into a contract to lease a building in BGC. The agreements between Warrior Company and lessor are as follows: Annual lease payment, payable in advance, beginning January 1, 2019, is worth P500,000. The lessee incurred initial direct cost worth P40,000 (excluding P10,000 which was reimbursed by the lessor to the lessee). 

Lease Term = 10 years 

Useful life of Building = 12 years 

Implicit interest rate = 12% 

Guaranteed Residual Value = P50,000 

Purchase Option = P120,000 

The lease contains neither a transfer of title to the lessee nor a purchase option. Use at least 4 decimal places to get the PV factor to be used. 

Required: 

Prepare table of amortization of the lease liability and interest expense for the first 3.