FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, 2021, Ehr Company leased a building to Dent Corporation for a ten-year term at an annual rental of P60,000. At inception of the lease, Ehr received P240,000 covering the first two years' rent of P120,000 and a security deposit of P120,000. This deposit will not be returned to Dent upon expiration of the lease but will be applied to payment of rent for the last two years of the lease.

1. What portion of the P240,000 should be shown as a non-current liability in Ehr's December 31, 2021 balance sheet?

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