On January 1, 2018, Famy Company signed an eight-year lease for office space. Famy has the option to renew the lease for an additional six-year period on or before January 1, 2024. During January 2020, Famy incurred the following costs. General improvements to the leased premises with useful life of 10 years
3.
On January 1, 2018, Famy Company signed an eight-year lease for office space. Famy has the option to renew the lease for an additional six-year period on or before January 1, 2024. During January 2020, Famy incurred the following costs.
|
General improvements to the leased premises with useful life of 10 years |
P5,400,000 |
|
Office furniture and equipment with useful life of 8 years |
2,400,000 |
|
Moveable assembly line equipment with useful life of 5 years |
1,800,000 |
At December 31, 2020, Famy’s intention as to the exercise of the renewal option is uncertain. A full year
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