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Please help. Thank you! On January 2, 2019, Harith Company entered...

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Accounting

Please help. Thank you!

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On January 2, 2019, Harith Company entered into a five-year lease requiring payments of P220,000 each lease year at the beginning of each year. The periodic payments include P20,000 in periodic repairs and maintenance to be done by the lessor. Harith Company's incremental borrowing rate is 12%, while the lessor's implicit interest rate, known to Harith Company, is 10%. The estimated residual value of the asset after five year lease term is at P40,000 while after its 10 year useful life is at P20,000. What is the carrying value of the right of use asset on the books of Harith Company as of December 31, 2019? 0 633,973 O 750,576 O 667,178 O 543,220

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