Reference no: EM132795728
Question -
Q1. On June 1, 2018 ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to the lessor: Bonus to obtain lease for P300,000; First month's rent for P100,000 and Last month's rent for P100,000. Compute the total rent income for 2018.
Q2. On January 1, 2018 ABC Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies that in the first two years, rent will be P20,000 per month but in the last three years, it will be P25,000 pre month. How much is the total rent receivable at the end of 2019?
Q3. On January 1, 2018 ABC Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies a rent of P20,000 per month. The lessor paid initial direct cost of P6,000 and incurred insurance and property tax expense in 2018 totaling P30,000. The depreciation of the office is P30,000. How much is the net income to be recognized by the lessor as a result of this lease in 2018?
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