FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jackie Company leased a parcel of land to Junnie Company for a lease term of 25 years starting January 1, 2018. Junnie immediately started to construct a building on the leased land which was finished and made available for use starting July 1, 2020. The ownership of the building will be transferred to Jackie Company after the end of the lease term. The monthly rentals on the land is P25,000. The total cost of the building is P2,700,000 and had a useful life of 40 years.
19.Assuming the use of the spread-out method, how much is the total taxable income of Jackie from the lease to be reported in 2020?
20.Assuming the use of the outright method, how much is the total taxable income of Jackie from the lease to be reported in 2020?
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