Question: Please answer all the questions and show the solution in good accounting form. Thank you! Problem 3: SALE AND LEASEBACK The following information were deemed

Please answer all the questions and show the solution in good accounting form. Thank you!

Problem 3: SALE AND LEASEBACK The following information were deemed relevant regarding a sale and leaseback agreement GEE Corp. entered into with EYCH Inc. of a heavy factory equipment on January 1, 2021: Selling Price of the Equipment - P1,500,000 Fair Market Value - P1,200,000 Carrying value on the books of GEE Corp. - #720,000 Remaining life of the equipment - 10years Lease back term - 8years Implicit lease rate - 12% Periodic annual rentals every December 31 - P 200,000 Required: 17. What is the gain/loss to be recognized from the sale and leaseback agreement on the books of GEE Corp. (seller/lessee) on January 1? 18. What is the interest expense to be recognized in 2021? 19. What is the carrying value of the lease liability as of December 31, 2021? 20. What is carrying value of the right of use asset as of December 31, 2021

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