Problem 5 On July 1, 2019. The Prince of Wales, Inc. signs a 10-year non-cancellable lease agreement for a storage building owned by Colony, Inc. The following information pertains to the lease agreement. Annual rental payment is P750,000 beginning on July 1, 2019. This rental includes P50,000 for taxes and insurance. The fair value of the building on July 1, 2019 is P4,478,000. The building has an estimated economic life of 12 years. Unguaranteed residual value at the end of 10 years is P150,000