Walker, Inc., leased a machine from Holden Company. The lease term was for a five-year period beginning January 1, 2008. Equal annual lease payments of P3,000 are due on December 31 of each year. The implicit rate of the lease is 10% and is known to Walker. Walker has properly applied the lease capitalization criteria and as a result, accounts for the lease as a finance lease. The first payment under the lease was made on December 31, 2008 as scheduled How much should Walker classify as the current portion of the lease liability at December 31, 2008? a. P2,252 b. P2,727 C. P3,000 d. P9,509 Rawlings Company entered into a direct-financing lease with Zubin Corporation, which called for seven annual rentals of P3,500 at an interest rate of 12 percent. The payments are to be paid and the end of each year. The lease also contained a bargain purchase option allowing Zubin to purchase the asset for P2,500 after making the seventh annual rental payment. What was the cost of the asset? a. P17,104 b. P18,473 c. P25,631 d. P27,000