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 depreciation of leasehold improvements on December 31,2021?
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
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