please help... :( Problem 1: 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:

1. Annual lease payment, payable in advance, beginning January 1, 2019, is worth P500,000.
2. The lessee incurred initial direct cost worth P40,000 (excluding P10,000 which was reimbursed by the lessor to the lessee).
3. Lease Term = 10 years
4. Useful life of Building = 12 years
5. Implicit interest rate = 12%
6. Guaranteed Residual Value = P50,000
7. 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:

1. Prepare table of amortization of the lease liability and interest expense for the first 3 years.
2. Prepare journal entries for 2019 and 2020.
3. Prepare journal entry (or indicate no additional entry to recognize gain if this is more appropriate) to record the return of the building to the lessor on January 1, 2029.

Assume the FV of the Building is P100,000.