Bristle Company leased office premises to Back Company for a five-year term beginning January 1, 2022....

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Bristle Company leased office premises to Back Company for a five-year term beginning January 1, 2022. Under the terms of operating lease, rent for the first year is P100,000 and rent for years 2 through 5 is P156,250 per annum. However, as an inducement to enter the lease, Bristle granted Back the first three months of the lease rent-free. What amount should Bristle Company report as lease income for 2022 and lease receivable on December 31, 2023, respectively? Bristle Company leased office premises to Back Company for a five-year term beginning January 1, 2022. Under the terms of operating lease, rent for the first year is P100,000 and rent for years 2 through 5 is P156,250 per annum. However, as an inducement to enter the lease, Bristle granted Back the first three months of the lease rent-free. What amount should Bristle Company report as lease income for 2022 and lease receivable on December 31, 2023, respectively?

Answer rating: 100% (QA)

To determine the amount Bristle Company should report as lease income for 2022 and the lease receivable on December 31 2023 we need to consider the terms of the lease and the rentfree period Given inf... View the full answer