On January 1, 2020, Agent Z Company entered into a lease with Overlord Company for a new equipment. The lease stipulates that annual payments of P1,000,000 will be made for five years starting December 31, 2020. Agent Z Company guaranteed a residual value of P474,060 at the end of the 5-year period. The equipment will revert to the lessor at the lease expiration. The implicit rate for the lease is 16% after considering the guaranteed residual value. The economic life of the equipment is 10 years. Questions: 1. How much is right-of-use asset account on January 1, 2020? 2. The carrying amount of lease liability on December 31, 2021 is 3. What is the carrying amount of right-of-use asset on December 31, 2022? 4. How much is the gain or loss on finance lease to be recognized at the end of the lease term?