On January 1, 20x1, POLTROON Co. leased a piece of equipment to COWARD, Inc. Information on the lease is as follows: Cost of equipment Useful life of equipment Lease term P1,200,000 5 years Annual rent payable at the end of each year 4 years 1400,000 Interest rate implicit in the lease Residual value 10% 180,000 The equipment will revert back to POLTROON at the end of the lease term. The lease is classified as sales type lease. a. How much is the gross investment in the lease on January 1, 20x1 assuming the residual value is guaranteed? b. How much are the sales and cost of sales if the residual value is unguaranteed?