On January 1, 2016, Bise Company signed an eight-year lease for office space. The entity has the option to renew the lease for an additional six-year period on or before January 1, 2022. In early part of 2018, the entity incurred the following costs: Improvements to the leased premises with useful life of 10 years, P5,400,000 Office furniture and equipment with useful life of 8 years, P2,400,000 Moveable assembly line equipment with useful life of 5 years, P1,800,000 On December 31, 2018, Bise’s intention as to the exercise of the renewal option is uncertain. A full depreciation of leasehold improvements is taken in the year of acquisition. On December 31, 2018, what amount of accumulated depreciation of leasehold improvements should be reported?
On January 1, 2016, Bise Company signed an eight-year lease for office space. The entity has the option to renew the lease for an additional six-year period on or before January 1, 2022. In early part of 2018, the entity incurred the following costs: Improvements to the leased premises with useful life of 10 years, P5,400,000 Office furniture and equipment with useful life of 8 years, P2,400,000 Moveable assembly line equipment with useful life of 5 years, P1,800,000 On December 31, 2018, Bise’s intention as to the exercise of the renewal option is uncertain. A full depreciation of leasehold improvements is taken in the year of acquisition. On December 31, 2018, what amount of accumulated depreciation of leasehold improvements should be reported?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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On January 1, 2016, Bise Company signed an eight-year lease for office space. The entity has the option to renew the lease for an additional six-year period on or before January 1, 2022. In early part of 2018, the entity incurred the following costs:
Improvements to the leased premises with useful life of 10 years, P5,400,000
Office furniture and equipment with useful life of 8 years, P2,400,000
Moveable assembly line equipment with useful life of 5 years, P1,800,000
On December 31, 2018, Bise’s intention as to the exercise of the renewal option is uncertain. A full depreciation of leasehold improvements is taken in the year of acquisition. On December 31, 2018, what amount of accumulated depreciation of leasehold improvements should be reported?
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