Happy Company leased a piece of equipment to Great Company on April...

1. Happy Company leased a piece of equipment to Great Company on April 1, 2021. The lease is appropriately recorded as a sale by Happy. The lease is for an 8-year period ending March 31, 2029. The first of 8 equal annual payments of P175,000 (excluding executory costs) was made on April 1, 2021. The cost of the equipment to Happy is P940,000. The equipment has an estimated useful life of 10 years with a guaranteed residual value of P100,000. At the end of the lease term, the leased equipment reverts to Happy Company. The interest rate implicit in the lease is 10%. The present value of a single payment at 10% for 8 periods is 0.4665. The present value of an ordinary annuity of 1 at 10% for 8 periods is 5.3349. The present value of an annuity due of 1 at 10% for 8 periods is 5.8684. How much is the total financial revenue (interest revenue) over the lease term?
2. Happy Company uses lease as a means of selling its equipment. On July 1, 2021, the company leased a piece of equipment to Great Company. The cost of the equipment to Happy Company was P684,000. The fair market value (which was the sales price) was P792,200 at the time of the inception of the lease. Annual lease payments are P135,000 and are payable in advance for 8 years. The equipment has an expected economic life of 10 years. At the end of the lease term, the title to the equipment will pass to Great Company. Implicit interest rate is 10%. What is the manufacturer's profit recognized by Happy Company in 2021?
3. On August 1, 2020, Sputnik Company leased furniture and fixtures from Home Company under a one-year contract. The lease payments are as follows: First 6 months at P12,000 per month; next 6 months at P8,000 per month. How much is the rent expense for the year ended December 31, 2020?
4. Sputnik V Company grants Gamaleya Company first month rent-free under a 12-month lease for low-value items such as furniture, tablets, and laptops. The lease is effective April 1, 2021 and provides for a monthly rental of P12,000, payment of which will begin on May 1, 2021. How much is the rent expense reported in Sputnik V Company's profit or loss for the year ended December 31, 2021?