Roger Company leases a computer equipment under a direct financing lease. The equipment has no residual value at the end of the lease and the lease does not contain bargain purchase option. The entity...

Roger Company leases a computer equipment under a direct financing lease. The equipment has no residual value at the end of the lease and the lease does not contain bargain purchase option. The entity wishes to earn 8% interest on a 5-year lease of equipment with a cost of P 3,234,000. The present value of an annuity due of 1 at 8% for 5 years is 4.312. What total amount of interest revenue should be recognized over the lease term? Show your solution.