16. On January 1, 2020, Roque Company 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, 2020, the Roque 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 2020 and additionally paid P600,000 to the lessor as a lease bonus to obtain the three-year lease. On April 1, 2020, Roque paid P100,000 to a broker as a finder fee. What is the net rental income of Roque Company for 2020?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
16. On January 1, 2020, Roque Company 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, 2020, the Roque 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 2020 and
additionally paid P600,000 to the lessor as a lease bonus to obtain the three-year lease. On April 1, 2020, Roque
paid P100,000 to a broker as a finder fee.
What is the net rental income of Roque Company for 2020?
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