What should the depreciation charge for the year ended

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Question - On January 1, 2017, F Company signed a 12-year lease for a building. F Company has an option to renew the lease for an additional 8-year period on or before January 1, 2020. During January 2019, F Company made substantial improvements to the building. The cost of the improvements was P3,600,000, with an estimated useful life of 15 years. At December 31, 2016, F Company intended to exercise the renewal option. F Company has taken a full year's amortization on this improvement. What should the depreciation charge for the year ended 31 December 2019?

Reference no: EM132740889

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