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Dexter Company signed a contract on May 1, 2005 whereby the company was to pay P960,000 cash plus P204,000 annual rent for an office building. The contract is for 10 years. Improvements and alterations were made on the building at a cost of P450,000 and it has an estimated economic life of 15 years and a salvage value of P30,000.
Answer the following:
Problem a. Amortization of leasehold for 2005 _
Problem b. Carrying value of leasehold at December 31, 2005 _
Problem c. Depreciation of leasehold improvements for 2005
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