Problem: CJF has an industrial building in its statement of financial position and it leases this building to DCH for a three-year term. The present value of lease payments is P$75,000 and the fair value of the building is P$400,000. The economic life of the building is 20 years. How should CJF account for this lease? Solution A. Recognise a right-of-use asset and a lease liability. B. Derecognize the property and recognize a lease receivable. C. Recognise the lease rentals as income in profit or loss over the lease term. D. Recognise the lease rentals as an expense in profit or loss over the lease term.