On January 1, 2019, Harrow Co. as lessee signed a five year non-cancellable equipment lease with annual payments of P100,000 beginning December 31, 2018.  The implicit interest rate is 10%.  How much is the interest expense for the year ended December 31, 2018? 37,900 27,900                                               24,200                                0

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56.On January 1, 2019, Harrow Co. as lessee signed a five year non-cancellable equipment lease with annual payments of P100,000 beginning December 31, 2018.  The implicit interest rate is 10%.

 How much is the interest expense for the year ended December 31, 2018?

37,900

27,900                                             

 24,200                               

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