Robert Company purchased a new machine for P8,000,000 on January 1, 2022 for the purpose of leasing it. The machine has an estimated 10- year life. On April 1, 2022, Robert leased the machine to Oas Company for three years at a monthly rental of P200,000. Oas Company paid the rental for one year of P2,400,000 on April 1, 2022 and additionally paid P600,000 to Robert as a lease bonus to obtain the three-year lease. For 2022, Robert incurred insurance of P50,000 for the leased machine. What is Robert's 2022 operating profit on this leased asset? O A P1,100,000

Robert Company purchased a new machine for P8,000,000 on January 1, 2022 for the purpose of leasing it. The machine has an estimated 10- year life. On April 1, 2022, Robert leased the machine to Oas Company for three years at a monthly rental of P200,000. Oas Company paid the rental for one year of P2,400,000 on April 1, 2022 and additionally paid P600,000 to Robert as a lease bonus to obtain the three-year lease. For 2022, Robert incurred insurance of P50,000 for the leased machine. What is Robert's 2022 operating profit on this leased asset? O A P1,100,000

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...

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