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10. On Dec. 1, 2020, the Branch Corporation leased an office space for ten(10) years at a monthly rental of P60,000. On that date, Branch paid the landlord the following amounts: Rent deposit First month's rent Second month's rent Installation of new walls & offices with an estimated P60,000 60,000 60,000 useful life of cight(8) years 384,000 What amount should Branch have charged to expense (related to the lease agreement) in the income statement for the year ended Dec. 31, 2020?

10. On Dec. 1, 2020, the Branch Corporation leased an office space for ten(10) years at a monthly rental of P60,000. On that date, Branch paid the landlord the following amounts: Rent deposit First month's rent Second month's rent Installation of new walls & offices with an estimated P60,000 60,000 60,000 useful life of cight(8) years 384,000 What amount should Branch have charged to expense (related to the lease agreement) in the income statement for the year ended Dec. 31, 2020?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10. On Dec. 1, 2020, the Branch Corporation leased an office space for ten(10) years at a monthly rental of P60,000. On that date, Branch paid the landlord the following amounts: Rent deposit P60,000 60,000 60,000 First month's rent Second month's rent Installation of new walls & offices with an estimated useful life of cight(8) years 384,000 What amount should Branch have charged to expense (related to the lease agreement) in the income statement for the year ended Dec. 31, 2020?
Transcribed Image Text:10. On Dec. 1, 2020, the Branch Corporation leased an office space for ten(10) years at a monthly rental of P60,000. On that date, Branch paid the landlord the following amounts: Rent deposit P60,000 60,000 60,000 First month's rent Second month's rent Installation of new walls & offices with an estimated useful life of cight(8) years 384,000 What amount should Branch have charged to expense (related to the lease agreement) in the income statement for the year ended Dec. 31, 2020?
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