What is Daniel's right of use of asset at December 31, 2016?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 3P
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Welington Company purchased a new machine for P4,800,000 on January 1, 2016 and leased the same to Daniel.  The machine has an estimated 12-year life, and will be depreciated P400,000 per year.  The lease if for a three-year period expiring January 1, 2019, at an annual rental of P850,000.  The implicit rate on the lease is 12%. Additionally, Daniel paid P300,000 to Welington as a lease bonus to obtain the three-year lease.  For 2016, Daniel incurred insurance expense of P80,000 for the leased machine.  What is Daniel's right of use of asset at December 31, 2016?   Use 2 decimal points in computing for the PV
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