Victory Company signed a 6-year lease for a store space on January 1,2017. The entity has an option to renew the lease for an additional 4-yearperiod on or before January 1, 2020. During January 2019, the entity madesubstantial improvement to the store. The cost of the improvement wasP1,080,000 with an estimated useful life of 10 years. On December 31,2019, the entity intended to exercise the renewal option. The entity hastaken a full year depreciation on this leasehold improvement for 2019. OnDecember 31, 2019, what is the carrying amount of the leaseholdimprovement?
A. P810,000B. P900,000C. P945,000D. P972,000
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