On January 1, 2018, Bise Company signed an eight-year lease for office space. Bise has the option
Question:
On January 1, 2018, Bise Company signed an eight-year lease for office space. Bise has the option to renew the lease for an additional six-year period on or before January 1, 2022. During January 2018, Bise incurred the following costs.
General improvements to the leased premises with useful life of 10 years P5,400,000
Office furniture and equipment with useful life of 8 years 2,400,000
Moveable assembly line equipment with useful life of 5 years 1,800,000
At December 31, 2018, Bise’s intention as to the exercise of the renewal option is uncertain. A full year depreciation of leasehold improvement is taken for year 2018. In Bise’s December 31, 2018 balance sheet, accumulated depreciation of leasehold improvement should be
Group of answer choices
P1,200,000
P 900,000
P 540,000
P1,300,000
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni