On January 1, 2019, Amaya company signed a 12 year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or before January 1, 2022. During January 2021, the entity made substantial improvement to the warehouse. The cost of the improvement was 972,000 with an estimated useful life of 15 years. On December 31, 2021, the entity intended to exercise the renewal option. The entity has taken a full year depreciation on this leasehold improvement for 2021. On December 31, 2021, what is the carrying amount of the leasehold improvement?
On January 1, 2019, Amaya company signed a 12 year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or before January 1, 2022. During January 2021, the entity made substantial improvement to the warehouse. The cost of the improvement was 972,000 with an estimated useful life of 15 years. On December 31, 2021, the entity intended to exercise the renewal option. The entity has taken a full year depreciation on this leasehold improvement for 2021. On December 31, 2021, what is the carrying amount of the leasehold improvement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
10. On January 1, 2019, Amaya company signed a 12 year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or before January 1, 2022.
During January 2021, the entity made substantial improvement to the warehouse. The cost of the improvement was 972,000 with an estimated useful life of 15 years.
On December 31, 2021, the entity intended to exercise the renewal option. The entity has taken a full year
On December 31, 2021, what is the carrying amount of the leasehold improvement?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education