Problem 2 B Company entered in a 5-year lease of a 5,000 sqm office space on January 1, 2021, in exchange of P2,000,000 annual lease payments payable every December 31, starting December 31, 2021. The lessee and lessor agreed to modify the lease on January 1, 2023. The incremental borrowing rate on January 1, 2021, and January 1, 2023, is 12% and 10%, respectively. Assume the following independent scenarios for the modification: a) The lease term is increased by an additional 2 years. b) The leased office space is increased by an additional 3,000 sqm and the lease payments is increased by an additional P1,400,000. The increased in lease payments is commensurate with market prices for the additional space. c) The lease term is decreased by 1 year. d) The leased officed space is decreased by 1,000 sqm and decreased the lease payments by P300,000. Requirements (Round PV factors to 5 decimal places): 1. Compute for the lease liability and right-of-use asset after the modification. 2. Compute for the gain or loss on lease modification, if any.