What amount should be recognized as a net rental revenue on December 31, 2021? On July 1,

What amount should be recognized as a net rental revenue on December 31, 2021?

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On July 1, 2020, Faithful Company leased equipment to Faithless Company for one-year period expiring June 30, 2021 for Php 90,000 per month. On July 1, 2021, Faithful Company leased this piece of equipment to toil company for a three-year period expiring June 30, 2024 for Php 112,500 a month. The original cost of the equipment was Php 7,200,000. The equipment, which has been continually on lease since July 1, 2017, is being depreciated on a straight-line basis over an eight-year period with no residual value. On July 1, 2020, Faithful Company leased equipment to Faithless Company for one-year period expiring June 30, 2021 for Php 90,000 per month. On July 1, 2021, Faithful Company leased this piece of equipment to toil company for a three-year period expiring June 30, 2024 for Php 112,500 a month. The original cost of the equipment was Php 7,200,000. The equipment, which has been continually on lease since July 1, 2017, is being depreciated on a straight-line basis over an eight-year period with no residual value.

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Answer Solution Formulas used iDeprecation for each year ... View the full answer