(AIC 10. On January 1, 20x6, Park Co. signed a for office space at P96,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of P500,000. Park's sales for the year ended December 10-year operating lease 31, 20x6, were P600,000. Upon execution of the lease, Park paid P24,000 as a bonus for the lease. Park's rent expense for the year ended December 31, 20x6, is d. 125,000 a. 98,400 (AICPA) b. 101,000 c. 103,400

(AIC 10. On January 1, 20x6, Park Co. signed a for office space at P96,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of P500,000. Park's sales for the year ended December 10-year operating lease 31, 20x6, were P600,000. Upon execution of the lease, Park paid P24,000 as a bonus for the lease. Park's rent expense for the year ended December 31, 20x6, is d. 125,000 a. 98,400 (AICPA) b. 101,000 c. 103,400

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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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

(AIC
10. On January 1, 20x6, Park Co. signed a
for office space at P96,000 per year. The lease included a
provision for additional rent of 5% of annual company sales in
excess of P500,000. Park's sales for the year ended December
10-year operating lease
31, 20x6, were P600,000. Upon execution of the lease, Park
paid P24,000 as a bonus for the lease. Park's rent expense for
the year ended December 31, 20x6, is
d. 125,000
a. 98,400
(AICPA)
b. 101,000
c. 103,400

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