25. On January 1, 20X0, ABC company signed a 12-year lease for warehouse space. ABC has an option to renew the lease for an additional 8 year period on or before January 1, 20X4. during January 20X2, ABC made substantial improvements to the warehouse. The cost of these improvements was P540, 000, with an estimated useful life of 15 years. On December 31, 20X2, ABC intended to exercise the renewal option. ABC has taken a full year’s depreciation on this leasehold improvement. In the December 31, 20X2 statement of financial position, what is the carrying amount of the leasehold improvement?
25. On January 1, 20X0, ABC company signed a 12-year lease for warehouse space. ABC has an option to renew the lease for an additional 8 year period on or before January 1, 20X4. during January 20X2, ABC made substantial improvements to the warehouse. The cost of these improvements was P540, 000, with an estimated useful life of 15 years. On December 31, 20X2, ABC intended to exercise the renewal option. ABC has taken a full year’s depreciation on this leasehold improvement. In the December 31, 20X2 statement of financial position, what is the carrying amount of the leasehold improvement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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25. On January 1, 20X0, ABC company signed a 12-year lease for warehouse space. ABC has an option to renew the lease for an additional 8 year period on or before January 1, 20X4. during January 20X2, ABC made substantial improvements to the warehouse. The cost of these improvements was P540, 000, with an estimated useful life of 15 years. On December 31, 20X2, ABC intended to exercise the renewal option. ABC has taken a full year’s
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