Question 35 Will Senses Company is a known dealer of machine. On January 1, 2020, Will leased a machine to Lito Company. Data related to the lease are as follows: Useful life of equipment Lease term Annual rent payable at the end of the year P 600,000 Cost of machine P 1,250,000 value P 120,000 Initial Direct Cost P 18,500 The interest rate implicit in the ease is 9%. The leased asset reverts to Will Company at the end of the lease term. Accordingly, Will Senses classifies the transaction as a sales-type lease. Assuming that the residual value is guaranteed, determine the unearned interest income relating to the lease on January 1, 2020. Round off final answer to nearest peso. Question 36 Assume the same given in Question 35 but this time the residual value is unguaranteed. Determine the interest income to be recognized on 2021. Round off final answer to nearest peso