Problem 3 On January 1, 2021, Rhone Metro Inc. purchased a unit of equipment at P6,000,000. The entity immediately leased it to Western Co. The four-year lease requires Western to pay P1,806,340.96 to Rhone Metro at the beginning of each year. The equipment will revert back to Rhone Metro on December 31, 2024, the end of the lease term. Initial direct cost incurred by Metro to finalize the lease amounted to P71,387.63 1. What is the adjusted implicit rate on the lease? 2. Determine the carrying amount of the lease receivable on December 31, 2021