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Question - Truppe Company leased a new machine to Byong Company on January 1, 2019. The lease expires on January 1, 2022. The annual rental is P1,150,000. Additionally, on January 1, 2019, Byong Company paid P680,000 to Truppe Company as a lease bonus and 200,000 as a security deposit to be refunded upon expiration of the lease. What amount of rental revenue should be reported for 2019?
a. 1,320,000
b. 1,500,000
c. 1,150,000
d. 1,200,000
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