Problem 2

A lessor purchased an equipment for P425,300 on January 1, 2020. This was leased out to a lessee for P80,000 per annum, payable at the end of each year. The lessor incurred P50,000 in finder's fees. The incremental borrowing rate of the lessor at this date was 10%. The lease term was 5 years and the useful life is 10 years. The asset will revert back to the lessor at the end of the lease.

How much is the lease receivable as of commencement date?

Problem 2

The depreciation to be recognized in 2021 is?