On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor permitted Trend to occupy the premises rent-free from October 1 to December 31, 2017. Improvements were made at the leased office at a total cost of P300,000, the improvements were finished on October 31, 2017. It was estimated that the improvements will be useful for 5 years. For the year ended December 31, 2017, Trend should record total expenses related to the lease facilities of 10,000 87,750 97,750 100,000
On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor permitted Trend to occupy the premises rent-free from October 1 to December 31, 2017. Improvements were made at the leased office at a total cost of P300,000, the improvements were finished on October 31, 2017. It was estimated that the improvements will be useful for 5 years. For the year ended December 31, 2017, Trend should record total expenses related to the lease facilities of 10,000 87,750 97,750 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor permitted Trend to occupy the premises rent-free from October 1 to December 31, 2017. Improvements were made at the leased office at a total cost of P300,000, the improvements were finished on October 31, 2017. It was estimated that the improvements will be useful for 5 years. For the year ended December 31, 2017, Trend should record total expenses related to the lease facilities of
10,000
87,750
97,750
100,000
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