Rapp Co. leased a new machine to Lake Co. on January 1, 20x1. The lease expires on January 1, 20x6. The annual rental is P90,000. Additionally, on January 1, 20x1, Lake paid P50,000 to Rapp as a lease bonus and P25,000 as a security deposit to be refunded upon expiration of the lease. In Rapp's 20x4 income statement, the amount of rental revenue should be?

Answer rating: 100% (QA)

In this scenario the lease terms and transactions are as follows Lease Term January 1 20x1 to Januar... View the full answer