13. What is the carrying value of the right of use asset on December 31, 2021?₱ 1,175,000 ₱ 1,087,500 ₱ 1,125,000 ₱ 1,135,833 On January 1, 2021, REINDEER signed a long-term lease for an office building. The term of thelease required Gee to pay P100,000 annually, beginning December 31, 2021 and continuing for30 years. On January 1, 2021, the present value of the lease payments is P1,125,000 at 8%interest rate implicit in the lease. Initial direct costs amount to P50,000.

Right of use asset initial recognition on January 1 2021 = Present value of lease payments +initial…

Answered: What is the carrying value of the right…

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What is the carrying value of the right of use asset on December 31, 2021? ₱ 1,175,000 ₱ 1,087,500 ₱ 1,125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

13. What is the carrying value of the right of use asset on December 31, 2021?

₱ 1,175,000

₱ 1,087,500

₱ 1,125,000

₱ 1,135,833

On January 1, 2021, REINDEER signed a long-term lease for an office building. The term of the
lease required Gee to pay P100,000 annually, beginning December 31, 2021 and continuing for
30 years. On January 1, 2021, the present value of the lease payments is P1,125,000 at 8%
interest rate implicit in the lease. Initial direct costs amount to P50,000.

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