what is the lease liability on dec 31 2022

Problem 1: On July 1, 2021, A Company signed a 5-year lease for an equipment having a 12-year economic life. The lease does not provide for a transfer of title or a bargain purchase option. The lease contract calls for annual payments of P360,000, starting July 1, 2021. The implicit interest rate in the lease is 14% which is known to A Company. Fair value of the equipment at the inception of the lease is P2,220,000. A Company uses the straight-line method of depreciation. PVF of an ordinary annuity using 14% for 5 periods is 3.43 PVF of an annuity due using 14% for 5 periods is 3.91