Use the following information for the next five (5) questions: The Company is a dealer in equipment. On January 1, 2020, an equipment was leased to another entity with the following provisions: Annual rental payable at the end of each year 1,500,000 Lease term and useful life of machinery 5 years Cost of equipment 4,000,000 Guaranteed residual value 500,000 Implicit rate 12% At the end of the lease term on December 31, 2024, the equipment will revert to the lessor. On such date, the fair value of the asset is P350,000. The perpetual inventory system is used. The lessor incurred initial direct cost of P200,000 in finalizing the lease agreement. (Present value factor round to two decimal places) Question 6 1 pts What is the gross investment in the lease? 7,500,000 O 8,000,000 0 4,000,000 O 4,500,000 Question 7 1 pts What is the net investment in the lease? O 5,400.000 5,685,000 4,000,000 O 3,500,000 Question 8 1 pts . What is the total unearned interest income? 0 2,315,000 O 1,815,000 0 2,100,000 O 2,600,000 Question 9 1 pts . What is the interest income to be recognized for 2020? 0 682,200 O 648,000 O 900,000 O 960,000 Question 10 1 pts What amount should be reported as profit on sale for 2020? O 1,485,000 O 1,685,000 O 3,500,000 0 4,000