leasehold improvement?warehouse space. The entity had an option to renew the leaseDuring January 2021, the entity made substantial improvementOn January 1, 2019, Averse Company signed a 12-year lease foron this leasehold improvement for 2021.On December 31, 2021, the entity intended to exercise therenewal option. The entity had taken a full year depreciationto the warehouse. The cost of the improvement was P540,000with an estimated useful life of 15 years.On December 31, 2021, w hat is the carrying amount of theWarehouse space. The entity had an option to renew the leaseor an additional 8-year period on or before January 1, 2022.i this leasehold improvement for 2021.a.486,000b.504,000. 510,000d.513,000

SOLUTION- THE LIFE THE LEASEHOLD IMPROVEMENT IS THE SHORTER OF THE USEFUL LIFE OF EITHER THE…

During January 2021, the entity made substantial improvement warehouse space. The entity had an option to renew the lease renewal option. The entity had taken a full year depreciation On December 31, 2021, the entity intended to exercise the leasehold improvement? On December 31, 2021, what is the carrying amount of the On January 1, 2019, Averse Company signed a 12-year lease for Or an additional 8-year period on or before January 1, 2022. During January 2021, the entity made substantial improvement for to the warehouse. The cost of the improvement was P540,000 an estimated useful life of 15 years. with renewal option. The entity had taken a full year depreciation i this leasehold improvement for 2021. a. 486,000 b. 504,000 C. 510,000 d. 513,000

During January 2021, the entity made substantial improvement warehouse space. The entity had an option to renew the lease renewal option. The entity had taken a full year depreciation On December 31, 2021, the entity intended to exercise the leasehold improvement? On December 31, 2021, what is the carrying amount of the On January 1, 2019, Averse Company signed a 12-year lease for Or an additional 8-year period on or before January 1, 2022. During January 2021, the entity made substantial improvement for to the warehouse. The cost of the improvement was P540,000 an estimated useful life of 15 years. with renewal option. The entity had taken a full year depreciation i this leasehold improvement for 2021. a. 486,000 b. 504,000 C. 510,000 d. 513,000

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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