Problem 10-10 (IFRS) for the lease of a machine from another entity. The machine Troy Company prepared the following amortization schedule has an economic life of six years. The lease agreement requires four annual payments of P330,000 including executory costs of P30,000, and the machine will be returned to the lessor at the end of the lease term. Minimum lease Interest Reduction Balance of payment expense liability 1/1/2020 12/31 / 2020 300,000 98,515 201,485 12/31 / 2021 300,000 78,366 221,634 12/31/2022 300,000 56,203 243,797 318,234 12/31/2023 300,000 31,766 268,234 50,000 liability 985,150 783,665 562,031 Required: 1. Prepare journal entry to record the finance lease on January 1, 2020. 2. Prepare journal entry on December 31, 2020 to record the annual lease payment and the executory cost. 3. Prepare journal entry to record the depreciation for 2020. 4. Prepare journal entry to record the annual lease payment and the executory cost on December 31, 2023. 5. Prepare journal entry to record the return of the machine to the lessor. Assume the fair value is the same as the residual value guarantee