On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,000 per month. Under the lease terms, Carlos pays 18 months' rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021? a.$1,000 b.$18,000 c.$13,000 d.$12,000
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On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,000 per month. Under the lease terms, Carlos pays 18 months' rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021?
a.$1,000
b.$18,000
c.$13,000
d.$12,000
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- On December 1, 2020, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months’ rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2020? a. $18,000 b. $1,000 c. $13,000 d. $12,000On July 1, 2019, a taxpayer enters into a 36-month lease. The terms of the lease require the taxpayer to pay $1,000 a month. Based on the value of the automobile, the inclusion amounts for years 1 through 3 are $314, $590, and $602, respectively. If the taxpayer uses the car 70% for business, what net amount can be deducted for lease expense in 2020? $7,987 $5,705 $11,587 $12,000 $4,920On 1 January 2017, Celia enters into an 8-year lease contract for 6,000 square meters of office space. Annual lease payment is P180,000 payable on 31 December each year. On 1 January 2021, Celia and the property owner agree to amend the original lease for the remaining 4 years to include additional 8,000 square meters of office space. As a result, the lease payment increases to P390,000 per year . Celia's incremental borrowing rate is 5% in 2017 and 6% in 2021. How much should he recognized as total depreciation expense for the year ended 2021? how much should he recognized as total interest expense for the year ended 2021? how much should be recognized as interest expense for the year ended 2020 relating to the lease of 6,000 square meter of office space? how much is the amount of right-of-use asset to be recognized on 1 January 2017?
- On January 1, 2019, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $25,000 beginning December 31, 2019. The lease is considered to be a finance lease. When reading the Amy income statement, you would expect to find which of the following accounts? A.Rent Revenue B.Rental Expense C.Interest Revenue D.Interest ExpenseOn May 1, 2022, Ella leases her condo to Fitz for a 12-month lease period starting May 1 for $1,000 per month. Ella requires that Fitz pay first month’s rent, last month’s rent and a $1,000 security deposit (total $3,000) prior to turning over the keys to Fitz. The security deposit is refundable as long as Fitz abides by the terms of the lease agreement. Compute the amount of gross rental income Ella will recognize in 2022Dee began leasing a business auto on January 1, 2022. The lease terminates on April 30, 2024. The fair market value of the car is $66,500. Dee uses the auto 75% for business. The 2022 lease-income inclusion table indicates an inclusion amount of $14 for a vehicle with a FMV of $66,500. How much is the 2022 lease income inclusion that Dee must report on her Schedule C? O A. $0 OB. $14 O C. $11 OD. $132
- Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental Annual real property tax assumed and paid by Claude 50,000 Security deposit 300,000 200,000| Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 2020. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2018 and 2019, respectively. 600,000; 50,000 650,000; 0 850,000; 50,000 350,000; 350,000On January 1, 2020 Venti Company rented out an apartment to Barbatos Company for an operatinglease term of 3 years. Any executory costs are responsibility of the Venti. The following items arerelevant to the lease:Annual rental payments 250,000Maintenance & property taxes 30,000Security deposit 80,000Requirements:a. What are the journal entries in the books of the Barbatos in 2020?b. What are the journal entries in the books of the Venti in 2020?Mr. X provided the following data on sale of his personal property sold in 2020 held by him for 15 months: Cost P225,000 Mortgage assumed by the seller 270,000 Installment Collection Schedule: 2020 67,500 2021 67,500 2022 45,000 How much is the contract price? Group of answer choices P180,000 P450,000 P225,000 P270,000
- Ebasan Company leased a building to Bu Corporation on January 1 2021. The lease expires on January 1 2026. The annual rental is P3,000,00D. Additionally, on January 1, 2021, Bu paid P500,000 as a lease bonus and P250,000 as a security deposit to be refunded upon expiration of the lease. Ebasan paid P150,000 to a real estate broker as finder fee. During 2021, Ebasan incurred insurance and property tax expense of P100,000. The building was depreciated P150,000 per year. What amount should Ebasan recognize as net rental revenue for 2021?Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental 300,000 Annual real property tax assumed and paid by Claude 50,000 Security deposit 200,000 Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 202O. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2020 assuming the company opted to report income from improvement using the spread-out method.25. On January 1, 2019, Rapp company leased a new machine to Lake company. The lease expires on January 1, 2024. The annual rental is 900,000. Additionally on January 1, 2019, Lake company paid 500,000 to Rapp company as a lease bonus and 250,000 as a security deposit to be refunded upon the expiration of the lease. What amount should be reported as rent revenue for the current year?
