agreement, RS SHO ACorporation leased out is commercial space to RS pay a monthly rental of P150,000 payable every 1 day of the month. Upon signing of the agreement, RS shall deposit an equivalent of 3-month rental to SMto settle any unpaid obligations of the lessee upon termination of the lease. In addition, RS shall also deposit an advance 2-month rental to be applied after the 1" month. The parties signed the agreement on May 1, 2021. Compute the gross income of SM upon signing of the agreement: a. P150,000 O b. P450,000 O c. P900,000
agreement, RS SHO ACorporation leased out is commercial space to RS pay a monthly rental of P150,000 payable every 1 day of the month. Upon signing of the agreement, RS shall deposit an equivalent of 3-month rental to SMto settle any unpaid obligations of the lessee upon termination of the lease. In addition, RS shall also deposit an advance 2-month rental to be applied after the 1" month. The parties signed the agreement on May 1, 2021. Compute the gross income of SM upon signing of the agreement: a. P150,000 O b. P450,000 O c. P900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![SMCorporation leased out its commercial space to RS Per agreement, RS shall
pay a monthly rental of P150,000 payable every 1* day of the month. Upon signing
of the agreement, RS shall deposit an equivalent of 3-month rental to SMto settle
any unpaid obligations of the lessee upon termination of the lease. In addition, RS
shall also deposit an advance 2-month rental to be applied after the 1 month. The
parties signed the agreement on May 1, 2021.
Compute the gross income of SM upon signing of the agreement:
O a. P150,000
O b. P450,000
O c. P900,000
d. Answer not given](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8b0c0d3-7749-4c2a-a0b3-a15e301717a9%2F2f17e597-80dc-40c5-9d30-f8a861e34fba%2Fncp27z7_processed.png&w=3840&q=75)
Transcribed Image Text:SMCorporation leased out its commercial space to RS Per agreement, RS shall
pay a monthly rental of P150,000 payable every 1* day of the month. Upon signing
of the agreement, RS shall deposit an equivalent of 3-month rental to SMto settle
any unpaid obligations of the lessee upon termination of the lease. In addition, RS
shall also deposit an advance 2-month rental to be applied after the 1 month. The
parties signed the agreement on May 1, 2021.
Compute the gross income of SM upon signing of the agreement:
O a. P150,000
O b. P450,000
O c. P900,000
d. Answer not given
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