On January 1,2022, ABC Company leased its equipment to DEF Company under a 3 year operating lease at P 250,000 per year. The lease includes a provision for additional rental of 5% of annual company sales in excess of P 2,000,000. DEF Company's sale for the year ended December 31,2022 was P 3,000,000. Upon execution of the lease, DEF Company paid P 100,000 as a bonus for the lease. What is ABC Company's rent revenue for the year ended December 31,2022?
On January 1,2022, ABC Company leased its equipment to DEF Company under a 3 year operating lease at P 250,000 per year. The lease includes a provision for additional rental of 5% of annual company sales in excess of P 2,000,000. DEF Company's sale for the year ended December 31,2022 was P 3,000,000. Upon execution of the lease, DEF Company paid P 100,000 as a bonus for the lease. What is ABC Company's rent revenue for the year ended December 31,2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1,2022, ABC Company leased its equipment to DEF Company under a 3 year operating lease at P 250,000 per year. The lease includes a provision for additional rental of 5% of annual company sales in excess of P 2,000,000. DEF Company's sale for the year ended December 31,2022 was P 3,000,000. Upon execution of the lease, DEF Company paid P 100,000 as a bonus for the lease. What is ABC Company's rent revenue for the year ended December 31,2022?
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