Please helppp.. Chicken Nuggets Company leased a machine on January 1. 2021 with the following information:

Annual rent payment, every December 31, 2021 700,000

Lease Term 10 years

Useful life of machine 12 years

Incremental borrowing rate 14%

Implicit Interest rate 12%

PV of an ordinary annuity of 1 for 10 periods at 14% : 5.216 and 12% : 5.650

PV of 1 for 10 periods at 14% : 0.270 and 12% : 0.322

Chicken Nuggets Company has the option to purchase (reasonably certain) the machine upon the lease expiration on January 31, 2031 by paying P100,000.

Determine the initial cost of Right of Use Asset.