Professional Documents
Culture Documents
19-86
November 10, 1986 January 1, 1987
SECTION 1. Purpose. — These regulations pursuant to Section 277 of the National Internal Revenue Code, prescribe the rules to govern the tax
treatment of lease agreements and provide guidelines for determining whether certain transactions purporting to be leases of tangible personal
property are in reality conditional sales contracts.
PART A
INCOME TAX
2.01 Lessor if contract is a lease — The amount paid for the use of property under an agreement which is determined under these regulations to be
a lease shall be considered as rental ( and therefor includible in gross income) of the lessor. Such lessor may deduct all ordinary and necessary
expenses paid or incurred during the taxable year which are attributable to the earning of the income. In addition, the lessor, with respect to
properties subject to an "operating lease" as defined in subparagraph 2.01/1 of this Section, will be allowed a deduction for depreciation determined
pursuant to Section 30 (f) of the National Internal Revenue Code (NIRC) and the Regulations thereunder: Provided, however, that tangible personal
properties listed in Annex "A" of these Regulations which are subject to "finance lease" (as defined in subparagraph 2.01/2 of this Section) may be
depreciated during the primary lease period but such period shall not be less than 60% of the depreciable life of the property as indicated in Annex
"A". If, under the agreement, the lessee pays to the lessor a stipulated rental, and in addition pays certain other expenses which are properly
payable by the lessor, the lessor is deemed to have received as rental income not only the stipulated rental but also the amount of such other
expenses paid by the lessee to, or for the account of, the lessor.
2.01/1 Operating lease defined — An "operating lease" is a contract under which the asset is not wholly amortized during the primary period of the
lease, and where the lessor does not rely solely on the rentals during the primary period for his profits, but looks for the recovery of the balance of
his costs and for the rest of his profits from the sale or re-lease of the returned asset of the primary lease period.
2.01/2 Finance lease defined — "Finance lease" or full payout lease is a contract involving payment over an obligatory period (also called primary or
basic period) of specified rental amounts for the use of a lessor's property, sufficient in total to amortize the capital outlay of the lessor and to
provide for the lessor's borrowing costs and profits. The obligatory period refers to the primary or basic non-cancellable period of the lease which in
no case shall be less than 730 days. The lessee, not the lessor, exercises the choice of the asset and is normally responsible for maintenance,
insurance and such other expenses pertinent to the use, preservation and operation of the asset. Finance leases may be extended, after the
expiration of the primary period, by non-cancellable secondary or subsequent periods with the rentals significantly reduced. The residual value shall
in no instance be less than five per centum (5%) of the lessor's acquisition cost of the leased asset.
2.02 "Packaged lease" not taxable as a corporation — A "package lease" or "lease package" shall not be considered as a joint venture or
association taxable as a corporation as defined in Section 20(b) of the National Internal Revenue Code.
2.03 "Packaged Lease" or "Lease Package" defined — A lease package refers to that type of finance lease which has two or more lessors,
particularly if the size of the lease facility is substantial relative to the exposure limits of a lessor. Under a lease package, the lead lessor either
invites one or more lessors to participate as a co-lessor in the funding lease. Consequently, two or more lessors may have co-ownership of a single
leased item, proportionate to their participation. For the purpose of this subparagraph, the lessors in a lease package shall be limited to finance and
leasing companies registered under Republic Act No. 5980.
2.04 Taxation of income derived from "'package leases" — The rental income derived from a packaged lease shall be taxable directly to each of
the participating lessors in their individual capacity, the respective shares of which shall be determined in accordance with their sharing agreement.
Any gain or loss derived by the lessor who sells the lease contracts or lease receivables to one or more buyers shall be taxed as ordinary gain or
loss. To compute ordinary gain or loss, the outstanding principal value of the lease as determined in Annex "B" shall be deducted from the selling
price.
2.05 Vendor, if contract is a conditional sale — If the agreement is determined to be a sale, the amounts received under the contract by the vendor
will be considered to be payments which are part of the sales price to the extent such amounts do not represent interest other charges.
3.01 Lessee, if contract is a lease — If under the criteria set forth in these Regulations, an agreement constitutes a lease, the lessee may deduct
the amount of rent paid or accrued, including all expenses which under the terms of the agreement the lessee is required to pay to, or for the
account of, the lessor. If the payments are so arranged as to constitute advance rentals, such payments shall be duly apportioned over the lease
term. In computing the term of the lease, all options to renew, shall be taken into consideration if there is a reasonable expectation that such options
will be exercised.
3.02 Vendee, if contract is a conditional sale — If under the provisions of these Regulations, the agreement is to be treated as a sale, the amounts
paid to the vendor will be considered as payments which are part of the purchase price to the extent such amounts do not represent interest or
other charges.
4.01 Statutory basis for distinguishing a lease from a sale — A lease is a contract whereby one of the parties (lessor) binds himself to give to
another (lessee) the enjoyment or use of a thing for a price certain, and for a period which may be definite or indefinite (Article 1643, Civil Code). In
other words, a lease is an agreement between a lessor and a lessee giving the lessee possession and use of a specific property upon payment of
rentals over a period of time. The lessor retains ownership of the asset so that it shall not become the property of the lessee or any related third
party during the term of the lease. On the other hand, a sale is a contract whereby one of the contracting parties (seller or vendor) obligates himself
to transfer ownership of and to deliver a determinate thing while the other party (buyer or vendee) obligates himself to pay for said thing a price
certain in money or its equivalent. (Article 1458, Civil Code.)
4.02 Characterizing a transaction that does not readily fit statutory concepts — In cases where the true character of the transaction cannot be
definitely determined from the terms and conditions of the agreement, the Commissioner shall make the determination on the basis of all relevant
facts and circumstances of each transaction, among which are (but not limited) those indicated in the following subparagraphs.
4.03/2 Compelling persuasive factors. A contract or agreement purported to be a lease shall be treated as conditional sales contract if one or more
of the following compelling persuasive factors are present:
(A) The lessee is given the option to purchase the asset at anytime during the obligatory period of the lease, notwithstanding that the option price is
equivalent to or higher than the current fair market value of the asset;
(B) The lessee acquires automatic ownership of the asset upon payment of the stated amount of "rentals" which under the contract he is required to
make;
(C) Portions of the periodic rental payments are credited to the purchase price of the asset;
(D) The receipts of payment indicate that the payment made were partial or full payments of the asset.
4.03/3 Absence of compelling persuasive factors. — In the absence of the above compelling persuasive factors or contrary implication, an intent
warranting treatment of a transaction for tax purposes as a purchase and sale rather than as a lease or rental agreement, may in general be said to
exist if, for example, one or more of the following conditions are present:
(a) Portions of the periodic payments are made specifically applicable to an equity to be acquired by the lessee.
(b) The property may be acquired under a purchase option, at a price which is nominal in relation to the value of the property at the time when the
option may be exercised, as determined at the time entering into the original agreement, or which is a relatively small amount when compared with
the total payments which are required to be made.
SECTION 5. Advance Ruling Required to Recognize Existence of a lease. — The parties to a lease agreement may secure from the Commissioner
an advance ruling recognizing the fact that an agreement actually constitutes a lease for tax purposes. In cases where a lessor is engaged in the
leasing business and frequently enters into a contract with various lessees under the same or essentially similar terms and conditions, the lessor
may submit a model lease agreement on which to base an advance ruling. Thereafter, any specific lease agreement entered into by the lessor and
a lessee which does not substantially deviate from the terms and conditions of the model contract on the basis which the advance ruling had been
secured, need not be submitted for advance ruling.
PART B
GROSS RECEIPTS TAX
6.01 The rental amounts received by a lessor from a lessee under an agreement qualifying as a finance lease as defined in Section 2.01/2 of these
Regulations shall be divided into two components, namely principal and interest to be arrived at using either the Annuity or the Sum-of-the-Years-
Digits method of accounting. The amount representing interest shall be determined in accordance with the formulae prescribed in Annex "B".
6.02 The amount of interest, if the same is derived by a finance and leasing company registered under R.A. 5980 shall be subject to the gross
receipts tax prescribed in Sections 260 and 261 (as amended by PD 1739) of the National Internal Revenue Code based on the remaining maturity
of the lease. Amounts which the lessee, under the agreement, pays to the lessor (in addition to a stipulated rental) for certain other expenses
properly payable by the lessor (as described in Section 2.01) shall be excluded for purposes of the gross receipts tax determined under this
subparagraph.
6.03 If the lessor is a person other than a finance and leasing company registered under R.A. 5980, then the rentals resulting from the lease
agreement shall be subjected too the 4% contractor's tax imposed under Section 205 of the National Internal Revenue Code.
6.04 If the lessor is a finance and leasing company registered under R.A. 5980 and sells its lease contract or merely sells its receivables (and
therefore retains title to the equipment), the rental amount received by the buyer shall be subjected to the pertinent provisions governing corporate
taxation under the NIRC without prejudice to the exemptions and benefits allowed by special laws.
SECTION 7. Effectivity. — These regulations shall take effect on January 1, 1987 and shall be applicable to all leases written on or after the said
date." (As amended by Revenue Regulations No. 22-86 dated December 16, 1986.)
Recommending Approval:
GUIDELINES IN THE DETERMINATION OF THE PRINCIPAL AND LEASE INCOME COMPONENT OF FINANCIAL LEASE RENTAL
Lease rentals received by financial lessor shall be broken down into a principal and lease income component, the latter being subjected to the gross
receipt tax under Sections 260 and 261 of NIRC, as amended by Section 15 of P.D. 1739. Recognition of lease income shall be based either on the
annuity methods or the sum-of-the years'-digits (SYD) method.
Ending Payment of
Outstanding Residual Principal Lease Lease
Period Balance Value Repayment Income Rental
0 936,584.12 63,415.88 30,000.00 93,415.88
1 871,265.76 65,318.36 28,097.52 93,415.88
2 803,987.85 67,277.91 26,137.97 93,415.88
3 734,691.61 69,296.24 24,179.64 93,415.88
4 663,316.48 71,375.13 22,040.75 93,415.88
5 589,800.09 73,516.39 19,899.49 93,415.88
6 514,078.21 75,721.88 17,694.00 93,415.88
7 436,084.68 77,993.53 15,422.35 93,415.88
8 355,751.34 80,333.34 13,082.54 93,415.88
9 273,088.00 82,743.34 10,672.54 93,415.88
10 187,782.36 85,225.64 8,190.24 93,415.88
11 100,000.00 87,782.36 5,663.52 1 93,415.88
12 100,000.00
Example 3. Lease Facility : P1,000.000
Guaranty Deposit : P100,000
Residual Value : P100,000
Period : 3 years in 12 quarterly installments
Lease Rental : P90,415.88 payable
quarterly in arrears
1 Figures not exact due to rounding off.
Based on Exhibit A, example 3, lease rate quarterly factor is .03. Thus,
Ending Payment of
Outstanding Residual Principal Lease Lease
Period Balance Value Repayment Income Rental
0 900,000.00
1 836,584.12 63,415.88 27,000.00 90,415.88
2 771,265.76 65,318.36 25,097.52 90,415.88
3 703,987.85 67,277.91 23,137.97 90,415.88
4 634,691.61 69,296.24 21,119.64 90,415.88
5 563,316.48 71,375.13 19,040.75 90,415.88
6 489,800.09 73,516.39 16,899.49 90,415.88
7 414,078.21 75,821.88 14,694.00 90,415.88
8 336,084.68 77,993.53 12,422.35 90,415.88
9 255,751.34 80,333.34 10,082.54 90,415.88
10 173,008.00 82,743.34 7,672.54 90,415.88
11 87,782.36 85,225.64 5,190.24 90,415.88
12 - 0 1 87,782.36 2,633.52 2 90,415.88
Example 4. Same parameters as Example 3 except that lease rental payments are in advance, thus, lease rate quarterly factor is also .03.
Ending Payment of
Outstanding Residual Principal Lease Lease
Period Balance Value Repayment Income Rental
0 836,584.12 63,415.88 27,000.00 90,415.88
1 771,265.76 65,318.36 25,097.52 90,415.88
2 703,987.85 67,277.91 23,137.97 90,415.88
3 634,691.61 69,296.24 21,119.64 90,415.88
4 563,316.48 71,375.13 19,040.75 90,415.88
5 489,800.09 73,516.39 16,899.49 90,415.88
6 414,078.21 75,721.88 14,694.00 90,415.88
7 336,084.68 77,993.53 12,422.35 90,415.88
8 255,751.34 80,333.34 10,082.54 90,415.88
9 173,008.00 82,743.34 7,672.54 90,415.88
10 87,782.36 85,225.64 5,190.24 90,415.88
11 - 87,782.36 2,633.52 2 90,415.88
12 - 0 1
1 Cashflow-wise, residual value is 0 since guarantee deposit, in the amount of P100,000, is given back at the end of the lease term and is netted
out with the residual value, which in this example, is also P100,000.
2 Figures not exact due to rounding off.
Example 5. Lease Facility : P1,000.000
Guaranty Deposit : P100,000
Residual Value : P200,000
Period : 3 years in 12 quarterly installments
Lease Rental : P83,369.67 payable
quarterly in arrears
Based on Exhibit A, example 3, lease rate quarterly factor is .03. Thus,
Ending Payment of
Outstanding Residual Principal Lease Lease
Period Balance Value Repayment Income Rental
0 900,000.00
1 843,630.33 56,369.67 27,000.00 83,369.67
2 785,569.57 58,060.76 25,308.91 83,369.67
3 725,766.99 59,802.58 23,567.09 83,369.67
4 664,170.33 61,596.66 21,773.01 83,369.67
5 600,725.77 63,444.56 19,925.11 83,369.67
6 535,377.87 65,347.90 18,021.77 83,369.67
7 468,069.54 67,308.33 16,061.34 83,369.67
8 398,741.96 69,327.58 14,042.09 83,369.67
9 327,334.55 71,407.41 11,962.26 83,369.67
10 253,784.92 73,549.63 9,820.04 83,369.67
11 178,028.80 75,756.12 7,613.55 83,369.67
12 - 100,000.00 1 78,028.80 5,340.87 2 83,369.67
1 Cashflow-wise, residual value is P100,000, since guarantee deposit which is also in the amount of P100,000, is netted out at the end of lease
term from the P200,000 residual value.
2 Figures not exact due to rounding off.
Example 6. Same parameters as Example 5, except that lease rental payments are in advance; thus, lease rate quarterly factor is also .03.
AcHCED
Ending Payment of
Outstanding Residual Principal Lease Lease
Period Balance Value Repayment Income Rental
0 843,630.33 56,369.67 27,000.00 83,369.67
1 785,569.57 58,060.76 25,308.91 83,369.67
2 725,766.99 59,802.58 23,567.09 83,369.67
3 664,170.33 61,596.66 21,773.01 83,369.67
4 600,725.77 63,444.56 19,925.11 83,369.67
5 535,377.87 65,347.90 18,021.77 83,369.67
6 468,069.54 67,308.33 16,061.34 83,369.67
7 398,741.96 69,327.58 14,042.09 83,369.67
8 327,334.55 71,407.41 11,962.26 83,369.67
9 253,784.92 73,549.63 9,820.04 83,369.67
10 178,028.80 75,756.12 7,613.55 83,369.67
11 100,000.00 78,028.80 5,340.87 2 83,369.67
12 - 100,000.00 1
1 Cashflow-wise, residual value is P100,000, since guarantee deposit which is also in the amount of P100,000, is netted out at the end of lease
term from the P200,000 residual value.
2 Figures not exact due to rounding off.
Exhibit 2B
Computational Examples in the Determination of the Lease Income Component of Lease Rentals under the SYD Method
Example 1. Lease Facility : P1,000,000
Guaranty Deposit : 0
Residual Value : P100,000
Period : 3 years in 12 quarterly installments
Lease Rental : P93,415.88 payable
quarterly in arrears
Based on the above parameters, the total lease income is P220,990.56 [(93,415.88 x 12) - (P1,000,000-P100,000)], while the SYD is equal to 78.
Thus, using the formula:
No. of remaining periodic Total Lease Lease income for a
payments (NRP) X Income = specific period
————————
SYD
the lease income for periods 1 to 12 are computed as follows:
Total Lease Lease Income
Period NRP/STD x Income = for the period
1 12/78 P220,990.56 P33,998.55
2 11/78 220,990.56 31,165.34
3 10/78 220,990.56 28,332.12
4 9/78 220,990.56 25,498.91
5 8/78 220,990.56 22,665.70
6 7/78 220,990.56 19,832.49
7 6/78 220,990.56 16,999.27
8 5/78 220,990.56 14,166.06
9 4/78 220,990.56 11,332.85
10 3/78 220,990.56 8,499.64
11 2/78 220,990.56 5,666.42
12 1/78 220,990.56 2,833.21
——————
P220,990.56
===========
Using the figures above, we arrive at the following table:
(A) (B) (C) (D) (E)
Payment of Principal
Outstanding Residual Lease Lease Repayment
Period Balance Value Rental Income (C-D-E)
0 1,000,000.00
1 940,582.67 93,415.88 33,998.55 59,417.33
2 878,332.13 93,415.88 31,165.34 62,250.54
3 813,248.37 93,415.88 28,332.12 65,083.76
4 745,331.40 93,415.88 25,498.91 67,916.97
5 674,581.22 93,415.88 22,665.70 70,750.18
6 600,997.83 93,415.88 19,832.49 73,583.39
7 524,581.22 93,415.88 16,999.27 76,416.61
8 445,331.40 93,415.88 14,166.06 79,249.82
9 363,248.37 93,415.88 11,332.85 82,083.03
10 278,332.13 93,415.88 8,499.64 84,916.24
11 190,582.67 93,415.88 5,666.42 87,749.46
12 - 100,000.00 93,415.88 2,833.21 90,582.67
Example 2. Same parameters as Example 1 except that lease rental payments are in advance, thus, the computation for the lease income is also
the same. DTIACH
(A) (B) (C) (D) (E)
Payment of
Outstanding Residual Lease Lease Principal
Period Balance Value Rental Income Repayment
0 940,582.67 93,415.88 33,998.55 59,417.33
1 878,332.13 93,415.88 31,165.34 62,250.54
2 813,248.37 93,415.88 28,332.12 65,083.76
3 745,331.40 93,415.88 25,498.91 67,916.97
4 674,581.22 93,415.88 22,665.70 70,750.18
5 600,997.83 93,415.88 19,832.49 73,583.39
6 524,581.22 93,415.88 16,999.27 76,416.61
7 445,331.40 93,415.88 14,166.06 79,249.82
8 363,248.37 93,415.88 11,332.85 82,083.03
9 278,332.13 93,415.88 8,499.64 84,916.24
10 190,582.67 93,415.88 5,666.42 87,749.46
11 100,000.00 93,415.88 2,833.21 90,582.67
12 - 100,000.00 - - -
Example 3. Lease Facility : P1,000,000
Guaranty Deposit : P100,000
Residual Value : P100,000
Period : 3 years payable in 12
quarterly installments
Lease Rental : P93,415.88 payable quarterly
in arrears
Based on the given parameters, the total lease income is P184,990.56 [(P90,415.88 x 12) - (P1,000,000-P100,000)], and the SYD is also 78. Thus,
Total Lease Lease Income
Period NRP/STD x Income = for the period
1 12/78 P184,990.56 P28,460.09
2 11/78 184,990.56 26,088.41
3 10/78 184,990.56 23,716.74
4 9/78 184,990.56 21,345.06
5 8/78 184,990.56 18,973.39
6 7/78 184,990.56 16,601.72
7 6/78 184,990.56 14,230.04
8 5/78 184,990.56 11,858.37
9 4/78 184,990.56 9,486.70
10 3/78 184,990.56 7,115.02
11 2/78 184,990.56 4,743.35
12 1/78 184,990.56 2,371.67
——————
P184,990.56
===========
(A) (B) (C) (D) (E)
Payment of
Outstanding Residual Lease Lease Principal
Period Balance Value Rental Income Repayment
0 900,00.00
1 838,044.21 90,415.88 28,460.09 61,955.79
2 773,716.74 90,415.88 26,088.41 64,327.47
3 707,017.60 90,415.88 23,716.74 66,699.14
4 637,946.78 90,415.88 21,345.06 69,070.82
5 566,504.29 90,415.88 18,973.39 71,442.49
6 492,690.13 90,415.88 16,601.72 73,814.16
7 416,504.29 90,415.88 14,230.04 76,185.84
8 337,946.78 90,415.88 11,858.37 78,557.51
9 257,017.60 90,415.88 9,486.70 80,929.18
10 173,716.74 90,415.88 7,115.02 83,300.86
11 88,044.21 90,415.88 4,743.35 85,672.53
12 - 0 1 90,415.88 2,371.67 88,044.21
1 Cashflow-wise, residual value is 0 since guaranty deposit, in the amount of P100,000, is given back at the end of the lease term and is netted out
with the residual value, which in this example, is also P100,000.
Example 4. Same parameters as Example 3 except that lease rental payments are in advance, thus, the computation for the lease income is also
the same. SDHAEC
(A) (B) (C) (D) (E)
Payment of
Outstanding Residual Lease Lease Principal
Period Balance Value Rental Income Repayment
0 838,044.21 90,415.88 P28,460.09 61,955.79
1 773,716.74 90,415.88 26,088.41 64,327.47
2 707,017.60 90,415.88 23,716.74 66,699.14
3 637,946.78 90,415.88 21,345.06 69,070.82
4 566,504.29 90,415.88 18,973.39 71,442.49
5 492,690.13 90,415.88 16,601.72 73,814.16
6 416,504.29 90,415.88 14,230.04 76,185.84
7 337,946.78 90,415.88 11,858.37 78,557.51
8 257,017.60 90,415.88 9,486.70 80,929.18
9 173,716.74 90,415.88 7,115.02 83,300.86
10 88,044.21 90,415.88 4,743.35 85,672.53
11 - 90,415.88 2,371.67 88,044.21
12 - 0 1 - - -
Example 5. Lease Facility : P1,000,000
Guaranty Deposit : P100,000
Residual Value : P200,000
Period : 3 years, 12 quarterly installments
Lease Rental : P83,369.67 payable
quarterly in arrears
The total lease income in this example is P200,436.04 [(P83,369.67 x 12) - (P1,000,000.00-P200,000)], while the SYD is also 78.
Total Lease Lease Income
Period NRP/STD x Income = for the period
1 12/78 P200,436.04 P30,836.31
2 11/78 200,436.04 28,266.62
3 10/78 200,436.04 25,696.93
4 9/78 200,436.04 23,127.24
5 8/78 200,436.04 20,557.54
6 7/78 200,436.04 17,987.85
7 6/78 200,436.04 15,418.16
8 5/78 200,436.04 12,848.46
9 4/78 200,436.04 10,278.77
10 3/78 200,436.04 7,709.08
11 2/78 200,436.04 5,139.39
12 1/78 200,436.04 2,569.69
1 Cashflow-wise, residual value is 0 since guaranty deposit, in the amount of P100,000, is given back at the end of the lease term and is netted out
with the residual value, which in this example, is also P100,000.
(A) (B) (C) (D) (E)
Payment of
Outstanding Residual Lease Lease Principal
Period Balance Value Rental Income Repayment
0 900,00.00
1 847,466.64 83,369.67 30,836.31 52,533.36
2 792,363.59 83,369.67 28,266.62 55,103.05
3 734,690.85 83,369.67 25,696.93 57,672.74
4 674,448.42 83,369.67 23,127.24 50,242.43
5 611,636.29 83,369.67 20,557.54 62,812.13
6 546,254.47 83,369.67 17,987.85 65,381.82
7 478,302.96 83,369.67 15,418.16 67,951.51
8 407,781.75 83,369.67 12,848.46 70,521.21
9 334,690.85 83,369.67 10,278.77 73,090.90
10 259,030.26 83,369.67 7,709.08 75,660.59
11 180,799.98 83,369.67 5,139.39 78,230.28
12 - 100,000.00 1 83,369.67 2,569.69 80,799.98
Example 6. Same parameters as Example 5, except that lease rental payments are in advance, thus, the computation for the lease income is also
the same.
(A) (B) (C) (D) (E)
Payment of
Outstanding Residual Lease Lease Principal
Period Balance Value Rental Income Repayment
0 847,466.64 83,369.67 30,836.31 52,533.36
1 792,363.59 83,369.67 28,266.62 55,103.05
2 734,690.85 83,369.67 25,696.93 57,672.74
3 674,448.42 83,369.67 23,127.24 50,242.43
4 611,636.29 83,369.67 20,557.54 62,812.13
5 546,254.47 83,369.67 17,987.85 65,381.82
6 478,302.96 83,369.67 15,418.16 67,951.51
7 407,781.75 83,369.67 12,848.46 70,521.21
8 334,690.85 83,369.67 10,278.77 73,090.90
9 259,030.26 83,369.67 7,709.08 75,660.59
10 180,799.98 83,369.67 5,139.39 78,230.28
11 100,000.00 83,369.67 2,569.69 70,799.98
12 - 100,000.00 - - -
1 Cashflow-wise, residual value is 100,000 since guaranty deposit, in the amount of P100,000, is given back at the end of the lease term from the
P200,000 residual value.