On October 1, 2021, Sputnik V Company leased from Gamaleya Company a set of furniture, which Sputnik will use for a period of 12 months. On this date, Sputnik paid the annual rental of P36,000 plus P3,000 incentive to Gamaleya as an inducement to grant the rental for a considerably short period of time. Sputnik reports on a calendar-year basis. How much is the rent expense reported in Sputnik V Company’s profit or loss for the year ended December 31, 2021?
On October 1, 2021, Sputnik V Company leased from Gamaleya Company a set of furniture, which Sputnik will use for a period of 12 months. On this date, Sputnik paid the annual rental of P36,000 plus P3,000 incentive to Gamaleya as an inducement to grant the rental for a considerably short period of time. Sputnik reports on a calendar-year basis. How much is the rent expense reported in Sputnik V Company’s profit or loss for the year ended December 31, 2021?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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On October 1, 2021, Sputnik V Company leased from Gamaleya Company a set of furniture, which Sputnik will use for a period of 12 months. On this date, Sputnik paid the annual rental of P36,000 plus P3,000 incentive to Gamaleya as an inducement to grant the rental for a considerably short period of time. Sputnik reports on a calendar-year basis.
How much is the rent expense reported in Sputnik V Company’s profit or loss for the year ended December 31, 2021?
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