mprovements has an estimated useful life of 20 years. The lease contract will be terminated on December 31, 2030 but is renewable for an additional 5-year term. ABC is reasonably certain to exercise the renewal option. How much is the carrying amount of the leasehold improvements at Dec 31, 2023 under the straight line method?
mprovements has an estimated useful life of 20 years. The lease contract will be terminated on December 31, 2030 but is renewable for an additional 5-year term. ABC is reasonably certain to exercise the renewal option. How much is the carrying amount of the leasehold improvements at Dec 31, 2023 under the straight line method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corp completed leasehold improvements on Jan 1, 2021 for a total cost of P480,000. Improvements has an estimated useful life of 20 years. The lease contract will be terminated on December 31, 2030 but is renewable for an additional 5-year term. ABC is reasonably certain to exercise the renewal option.
How much is the carrying amount of the leasehold improvements at Dec 31, 2023 under the
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