WITH SOLUTION /COMPUTATION 64.On December 31,2019, an entity sold a machine with useful life of 10 years to another entity andsimultaneously leased it back for two years at annual rental of P360,000. Sale price at fair value 3,600,000 Caryingamount 3,300,000 What amount of revenue from sale of the machine should be reported in 2019? 150,000 300,000 360,000 180,000

WITH SOLUTION /COMPUTATION 64.On December 31,2019, an entity sold a machine with useful life of 10 years to another entity andsimultaneously leased it back for two years at annual rental of P360,000. Sale price at fair value 3,600,000 Caryingamount 3,300,000 What amount of revenue from sale of the machine should be reported in 2019? 150,000 300,000 360,000 180,000

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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WITH SOLUTION/COMPUTATION 62. On January 1, 2019, an entity purchased a new machine for P6,000,000 for the purpose of leasing it. The machine had an estimated 10-year life. On April 1,2019, the entity leased the machine to a lessee for three years at a monthly rental of P400,000. The lessee paid the rental for one year of P4,800,000 on April 1, 2019 and additionally paid P900,000 to the lessor as a lease bonus to obtain the three-year lease. On April 1, 2019, the entity paid P300,000 to a broker as a finder fee. What is the net rental income for 2019?a. 3,150,000b. 4,350,000c. 3,200,000d. 4,400,000
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