Wiwil Co. from Malaybalay City leased an equipment of January 3, 2017 from the lessor Gui-yang Corp. The lease contract provides the following:

Annual fixed payments in advanced at January 3 of each lease year Php 2,000,000

Initial direct cost paid on January 3, 2017 500,000

Lease incentive received 300,000

Residual value guaranteed 600,000

Executory cost 50,000

Contractual lease term 5 years Useful life of equipment 6 years

The implicit rate of the lease was at 8%. What is the interest expense for 2017?