Under leases
Extracted text: . How much is the gain on leaşeback recorded on January 1, 2021?* For numbers 3 to 5, please refer to the following problem: On January 1, 2021, GOBBLEGUT Corp. sold machinery costing P600,000 with an accumulated depreciation of P250,000 for P1,000,000 which is also the fair value. The sale meets the requirements of PFRS 15. The remaining life of the machine is 5 years. GOBBLEGUT Corp. immediately leased the machine back for P200,000 yearly, payable in advance for 5 years. The implicit rate of interest is 12%. Round off PV factors to two decimal places. a. 808,000 b. 650,100 c. 124,800 d. 457,460 How much is the depreciation expense of right-of-use machinery for the year 2021?: For numbers 3 to 5, please refer to the following problem: On January 1, 2021, GOBBLEGUT Corp. sold machinery costing P600,000 with an accumulated depreciation of P250,000 for P1,000,000 which is also the fair value. The sale meets the requirements of PFRS 15. The remaining life of the machine is 5 years. GOBBLEGUT Corp. immediately leased the machine back for P200,000 yearly, payable in advance for 5 years. The implicit rate of interest is 12%. Round off PV factors to two decimal places. а. 56,560 b. 91,492 c. 161,492 d. 200,000