Z Corporation leased out its commercial space to C. Per agreement, C shall pay a monthly rental of P150,000 payable every 1st day of the month. Upon signing of the agreement, C shall deposit an equivalent of 3-month rental to Z to settle any unpaid obligations of the lessee upon termination of the lease. In addition, C shall also deposit an advance 2-month rental to be applied after the 1st month. The parties signed the agreement on May 1, 2021. Compute the gross income of Z upon signing of the agreement: a. P150,000 b. P450,000 c. P900,000 d. Answer not given
Z Corporation leased out its commercial space to C. Per agreement, C shall pay a monthly rental of P150,000 payable every 1st day of the month. Upon signing of the agreement, C shall deposit an equivalent of 3-month rental to Z to settle any unpaid obligations of the lessee upon termination of the lease. In addition, C shall also deposit an advance 2-month rental to be applied after the 1st month. The parties signed the agreement on May 1, 2021. Compute the gross income of Z upon signing of the agreement: a. P150,000 b. P450,000 c. P900,000 d. Answer not given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Z Corporation leased out its commercial space to C. Per agreement, C shall pay a monthly rental of P150,000 payable every 1st day of the month. Upon signing of the agreement, C shall deposit an equivalent of 3-month rental to Z to settle any unpaid obligations of the lessee upon termination of the lease. In addition, C shall also deposit an advance 2-month rental to be applied after the 1st month. The parties signed the agreement on May 1, 2021.
Compute the gross income of Z upon signing of the agreement:
a. P150,000
b. P450,000
c. P900,000
d. Answer not given
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