16. Oliver entered into a 40-year lease contract with Bernas. Per agreement, Oli will construct a building on Bernas lot and operate the same for 40 ver Ownership of the building will transfer to Bernas upon the termination of lease. The lease will not commence until the building is completed. 0l completed the building at a total cost of P40,000,000 on January 1, 2022. building is expected to be used over 50 years. In the immediately preceding problem, assume that the building was completed on July 1, 2022, what is the income using outright method. um welH c. P32,000,000 d. P40,000,000 a. P4,000,000 b. P8,000,000 000,00A9 000 02s9

16. Oliver entered into a 40-year lease contract with Bernas. Per agreement, Oli will construct a building on Bernas lot and operate the same for 40 ver Ownership of the building will transfer to Bernas upon the termination of lease. The lease will not commence until the building is completed. 0l completed the building at a total cost of P40,000,000 on January 1, 2022. building is expected to be used over 50 years. In the immediately preceding problem, assume that the building was completed on July 1, 2022, what is the income using outright method. um welH c. P32,000,000 d. P40,000,000 a. P4,000,000 b. P8,000,000 000,00A9 000 02s9

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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Oliver entered into a 40-year lease contract with Berna. Per agreement, Oliver will construct a building on Berna’s lot and operate the same for 40 years. Ownership of the building will transfer to Berna upon the termination of the lease. The lease will not commence until the building is completed. Oliver completed the building at a total cost of P40,000,000 on January 1, 2022. The building is expected to be used over 50 years In the immediately preceding problem, assume that the building was completed on July 1, 2022, what is the income using the outright method? P40,000,000 P32,000,000 P8,000,000 P4,000,000 ADD EXPLANATION THANKS
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