Annual rental for the first 3 years payable at the end of each year250,000Annual rental...
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Accounting
Annual rental for the first 3 years payable at the end of each year250,000
Annual rental for the next 4 years payable at the end of each year350,000
Implicit interest rate10%
The company guaranteed a P150,000 residual value after the lease term to the lessor.
The company uses the straight line method in depreciating their assets.
1. What is the carrying amount of right of use asset on December 31, 2021?
2. What is the current portion of the lease liability on December 31, 2022?
3. What is the noncurrent portion of the lease liability on December 31, 2023?
4. What is the carrying amount of the lease liability on December 31, 2025?
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