The original cost of the equipment was P 3,200,000. The equipment which has been continually on lease since July 1,2016 is being depreciated on a straight-line basis over an eight year period with no salvage value. Both the lease to 456 and 789 are appropriately recorded as operating leases for accounting purposes. 456 and 789 both accounted their lease by applying the recognition and measurement exemptions for short term leases with low value. What is the amount of income or (expense) that 123 would record as a result of the above facts for the year ended December 31, 2017?
123 Company leased equipment to 456 Company on July 1,2016, for a one year period expiring on June 30,2017, for P 40,000 a month. On July 1,2017, 123 leased this piece of equipment to 789 Company for a 3 year period expiring June 30,2020, for a P 50,000 a month. The original cost of the equipment was P 3,200,000. The equipment which has been continually on lease since July 1,2016 is being
What is the amount of income or (expense) that 123 would record as a result of the above facts for the year ended December 31, 2017?
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