Solution for QID #73441: Topic: Lease (VALIX) | Intermediate Accounting 1. On Janu | StudyHelpMe

Topic: Lease (VALIX) | Intermediate Accounting 1. On January 1, 2020 an entity entered into a lease for commercial space with the following information: Annual rental payable at the end of each year P200,000; Lease term for 5 years; Implicit rate in the lease for 9%. On January 1, 2022, the entity and the lessor agreed to amend the original lease by extending the lease by 3 more years with the following information: Annual rental payable at end of each year beginning December 31, 2022 for P200,000 and an implicit rate in the lease for 11%. Compute for the carrying value of the right of use asset on December 31, 2022. (Use four decimal places for your present value ex:1.3284) 806,658 466,800 672,215 622,400 2. On January 1, 2020, an entity leased a machinery with the following data: Annual rental payable at the end of each year for P80,000 with a lease term for 6 years and with an implicit rate of 7%. On January 1, 2023, the entity and the lessor agreed to amend the original terms of the lease by reducing the lease payment to P70,000 and increasing the implicit rate to 9%. Compute for the interest expense to be recognize on January 1, 2023. 15,947 18,968 14,696 0 3. On January 1, 2016, an entity entered into a four-year operating lease. The payments were as follows: P20,000 for 2016; P18,000 for 2017; P16,000 for 2018 and P14,000 for 2019. What is the correct amount of lease expense for 2019? 20,500 19,000 14,000 18,000 17,000