Wall Co. leased office premises to Fox Co. for a 5 year, operating lease, beginning Jan. 1, 2022. Under the terms of this lease, rent for the 1st year is P100,000 and rent for the remaining years is P156,250 per annum. As an inducement to the lease, Wall granted Fox the 1st three months, rent-free. What amount should Wall report as lease income for 2022?
Wall Co. leased office premises to Fox Co. for a 5 year, operating lease, beginning Jan. 1, 2022. Under the terms of this lease, rent for the 1st year is P100,000 and rent for the remaining years is P156,250 per annum. As an inducement to the lease, Wall granted Fox the 1st three months, rent-free. What amount should Wall report as lease income for 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wall Co. leased office premises to Fox Co. for a 5 year, operating lease, beginning Jan. 1, 2022. Under the terms of this lease, rent for the 1st year is P100,000 and rent for the remaining years is P156,250 per annum. As an inducement to the lease, Wall granted Fox the 1st three months, rent-free.
What amount should Wall report as lease income for 2022?
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