Problem 12-4 (AA) Dorey Company purchased a machine on January 1, 2020 for P5,000,000 for the express purpose of leasing it. The machine was expected to have a 10-year life with no residual value and the straight line method of depreciation is used. On March 1, 2020, Dorey Company leased the machine to Anne Company tor P1,200,000 a year for a 4- year period ending February 28, 2024. Dorey Company paid a total of P60,000 for maintenance and received P1,200,000 from Anne Company on March 1, 2020. Dorey Company retains title to the property and plans to lease it to someone else after the 4-year lease period. Required: 1. Prepare journal entries on the books Dorey Company. 2. Determine the net rent income of Dorey Company