Uthred Corp, as lessee, signed a lease contract for equipment for 5 years, beginning December 31, 2022. Annual rental payments of P40,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Uthred's incremental borrowing rate is 8%. Uthred is unaware of the rate being used by the lessor. At the end of the lease, Uthred has the option to buy the equipment for P5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no residual value. Uthred uses the straight-line method of depreciation on similar owned equipment. The amount of the right-of-use asset to be recorded by the Lessee at the commencement of the Lease is nearest to_________. 

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Calculate the amount of the rightofuse asset to be recorded by the Lessee a... View the full answer