1. On January 1, 2021, ABC Co. enters into a 4-year lease of office equipment. The rent in 2021 is P10,000 and shall increase by 20% annually starting January 1,2022. Rentals are payable at the end of...

1.<br>On January 1, 2021, ABC<br>Co. enters into a 4-year<br>lease of office equipment.<br>The rent in 2021 is P10,000<br>and shall increase by 20%<br>annually starting January<br>1,2022. Rentals are<br>payable at the end of each<br>year. ABC Co. pays the<br>lessor a lease bonus of<br>P5,000 on January 1, 2021.<br>ABC Co. opts to use the<br>practical expedient<br>allowed under PFRS 16 for<br>leases of low value assets.<br>How much is the lease<br>expense in 2021?<br>O P14,670<br>P11,603<br>O P12,853<br>P10,000<br>

Extracted text: 1. On January 1, 2021, ABC Co. enters into a 4-year lease of office equipment. The rent in 2021 is P10,000 and shall increase by 20% annually starting January 1,2022. Rentals are payable at the end of each year. ABC Co. pays the lessor a lease bonus of P5,000 on January 1, 2021. ABC Co. opts to use the practical expedient allowed under PFRS 16 for leases of low value assets. How much is the lease expense in 2021? O P14,670 P11,603 O P12,853 P10,000

Jun 11, 2022

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1. On January 1, 2021, ABC Co. enters into a 4-year lease of office equipment. The rent in 2021 is P10,000 and shall increase by 20% annually starting January 1,2022. Rentals are payable at the end of...

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