On January 1, 2020, Betty Company negotiated a 4-yr lease for an equipment owned by Veronica Company. The underlying asset has a remaining useful life of 5 years and estimated residual value of P572,000. Before commencement, Betty incurred P86,500 of initial direct costs and provided Veronica Company a lease bonus of P46,300. Annual payments of P1,000,000 are payable to Veronica beginning January 1, 2020 and every January 1 thereafter. Betty has an option to purchase the machine by paying P350,000 on January 1, 2024. It is reasonably certain that the purchase option will be exercised. Betty's depreciation policy on all depreciable assets uses Sum of Years Digits during the first three years and straight line method afterwards. The lease was negotiated to assure the lessor a 16% rate of return. PV of an ordinary annuity of 1 at 16% for 4 periods 2.798 PV of an annuity due of 1 at 16% for 4 periods 3.246 PV of 1 at 16% for 4 periods 0.552 

REQUIRED 1. Determine the lease liability and right of use asset. 2. Prepare an amortization schedule for Betty Company. 3. Prepare a depreciation table for Betty Company. 4. Journal entries on the books of Betty for 2020 and 2021 and on January 1, 2024 assuming Betty Company did not exercise the purchase option