1. On January 1, 2019, Averse Company signed a 12-year lease for warehouse space. The entity had an option to renew the lease for an additional 8-year period on or before January 1, 2022. During January 2021, the entity made substantial improvement to the warehouse. The cost of the improvement was P540,000, with an estimated useful life of 15 years. On December 31, 2021, the entity intended to exercise the renewal option. The entity had taken a full dpereciation on this leasehold improvement for 2021. On December 31, 2021, what is the carrying amount of the leasehold improvement?
1. On January 1, 2019, Averse Company signed a 12-year lease for warehouse space. The entity had an option to renew the lease for an additional 8-year period on or before January 1, 2022.
During January 2021, the entity made substantial improvement to the warehouse. The cost of the improvement was P540,000, with an estimated useful life of 15 years.
On December 31, 2021, the entity intended to exercise the renewal option. The entity had taken a full dpereciation on this leasehold improvement for 2021.
On December 31, 2021, what is the carrying amount of the leasehold improvement?
2. On January 1,2021, Ames Company signed an eight-year lease for office space.
The entity had the option to renew the lease for an additional four-year period on or before January 1, 2028.
In early January 2021, the entity incurred the following costs:
•P1,200,000 for general improvements to the leased premises with an estimated useful life of ten years.
•P500,000 for office furniture and equipment with an estimated useful life of ten years.
•P400,000 for moveable assembly line equipment with useful life of 5 years.
On December 31,2021, the entity's intention as to exercise of the renewal option are uncertain.
What amount should be reported as accumulated
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