Question: answer the ff with solutions On January 1, 2022, a company leased a land and building from an unrelated lessor for a 10- year term.

answer the ff with solutions

On January 1, 2022, a company leased a land and building from an unrelated lessor for a 10- year term. The lease had a renewal option for an additional 5 years, but the entity has not reached a decision with regard to the renewal option. In early 2020, the entity completed three improvements to the property: Improvement 1 10 years P 940.000 Improvement 2 8 years 1.500.000 Improvement 3 12 years 360.000 What amount of depreciation of leasehold improvements will be reported in 2022? a. P199.228 b. P280.000 c. P311.500 d. P317.500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Multiple Choice: Use the following to answer questions 21 thru 26: On January 1, 2018 Jones Company leased equipment from Smith Company. Smith Company purchased the equipment from Ott Company at a...

Fall Corporation's capital structure consists of 500,000 authorized shares of common stock, of which 100,000 have been issued and are still outstanding. At December 31, 2023, an analysis of the...

i need a solution of computional problems i really need help on those. Chapter 15Leases MULTIPLE CHOICE 1. Generally accepted accounting principles require that certain lease agreements be accounted...

Lessee Company entered into a lease of a building on January 1, 2020 with the ff terms: Annual rental payable at the end of each year Lease term Useful life of building Implicit interest rate FV on...

Unit 2 Review Crossword Across Clues Down Clues Puzzle 1. A company with a DB pension plan achieves actual return of 8.5%. Benefits paid to retirees was $30,320 if beginning plan assets was $370,850...

Could I get help with this? Is this better? On January 1, 2022, Wells Co. leased a building to Smart inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for...

Provide the answer for each problem below: PROBLEM 1: Lessor accounting - Direct Financing On January 1, 2020, Dandelion Corp. a finance company leased one of its buildings to Priscilla Co. under the...

(Lessee-Lessor Entries; Sales-Type Lease) On January 1, 2011, Palmer Company leased equipment to Woods Corporation. The following information pertains to this lease. The term of the noncancelable...

Exercise 21-7 On January 1, 2017, Flint Company leased equipment to Buffalo Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no...

Exercise 21-7 On January 1, 2017, Carla Company leased equipment to Sarasota Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no...

Explain how the auditor tests internal controls over financial reporting.

Diana Kuhlmann started her own consulting firm, Kuhlmann Consulting Inc., on May 1, 2010. The following transactions occurred during the month of May. May 1 Stockholders invested $15,000 cash in the...

Ending inventory is equal to the cost of items on hand plus items in transit sold f . o . b . destination. items in transit sold f . o . b . shipping point. purchases in transit f . o . b ....

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....