On January 1, 2019, ABC Company leased an office building with the following term Annual rental at the end of each year Lease term and useful life of the building P 300,000 4. years The implicit rate in the lease 12% On January 1, 2021 the lessee and the lessor agreed to amend the original terms of the lease with the following information: Annual rental payable at end of each year P 300,000 Extension of lease term 2 years The implicit rate in the lease 14% Required: 1. What amount should be reported as lease liability on December 31, 2020?

On January 1, 2019, ABC Company leased an office building with the following term Annual rental at the end of each year Lease term and useful life of the building P 300,000 4. years The implicit rate in the lease 12% On January 1, 2021 the lessee and the lessor agreed to amend the original terms of the lease with the following information: Annual rental payable at end of each year P 300,000 Extension of lease term 2 years The implicit rate in the lease 14% Required: 1. What amount should be reported as lease liability on December 31, 2020?

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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