15. 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 Improvement 2 Improvement 3 10 years 8 years 12 years P 940,000 1,500,000 360,000 What amount of depreciation of leasehold improvements will be reported in 2022? a. P199,228 b. P280,000 c. P311,500 d. P317,500

15. 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 Improvement 2 Improvement 3 10 years 8 years 12 years P 940,000 1,500,000 360,000 What amount of depreciation of leasehold improvements will be reported in 2022? a. P199,228 b. P280,000 c. P311,500 d. P317,500

Name: 15. On January 1, 2022, a company leased a land and building from an
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Description: 15. 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 notreached a decision with regard to the renewal option.In early 2

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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