An entity entered into a one-year tenancy contract from March 1, 2021, to February 28, 2022. The monthly rental was P90,000. For the year ended December 31, 2021, the entity paid P1,080,000 for the contract and recorded it as rental expenses. The profit for the year ended December 31, 2021, was
An entity entered into a one-year tenancy contract from March 1, 2021, to February 28, 2022. The monthly rental was P90,000. For the year ended December 31, 2021, the entity paid P1,080,000 for the contract and recorded it as rental expenses. The profit for the year ended December 31, 2021, was
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:.An entity entered into a one-year tenancy contract from March 1, 2021, to February 28, 2022. The
monthly rental was P90,000. For the year ended December 31, 2021, the entity paid P1,080,000
for the contract and recorded it as rental expenses. The profit for the year ended December 31,
2021, was
overestimated by P900,000
overestimated by P180,000
O underestimated by P900,000
underestimated by P180,000
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