At the beginning of current year EDSA Company leased an equipment from a lessor with the following pertinent information: a) Annual rental payable at the end of each year 500,000 b) Lease term 8 years c) Useful life of equipment 10 years d) Implicit interest rate 10% e) PV of an ordinary annuity of 1 for 8 periods at 10% 5.33 f) Present value of 1 for 8 periods at 10% .47. The entity has the option to purchase the equipment on the expiration of the lease term by paying 500,000.00. There is reasonable certainty that the entity shall exercise the option. The entity incurred initial direct cost of 200,000. What is the depreciation for the current year?

362,500

387,500

310,000

290,000

On January 1, 2019 , EDSA Company leased a building to UMAK company under an operating lease for 5 years 500,000 per year and payable the first day of each lease year. EDSA company paid 150,000 to real estate broker as a finder fee and incurred insurance and property tax expense totaling 90,000 for the current year. The building is depreciated 120,000 per year. Additionally, UMAK Company paid 500,000 to EDSA company as a lease bonus and 250,000 as a security deposit to be refunded upon expiration of the lease. What amount of rental revenue should be reported for 2019?

500,000

600,000

750,000

850,000

On January 1, 2020 EDSA Company had an overdue 10% note payable to Banco Filipino at 8,000,000 and accrued interest of 800,000. As a result of restructuring agreement on January 1, 2020, Banco Filipino agreed to the following provisions: a) The principal obligation is reduced to 6,000,000.00 b) the Accrued interest of 800,000 is forgiven c) The date of maturity is extended to December 31, 2023 d) Annual interest of 12% is to be paid for 4 years every December 31. Additional information: The present value of 1 at 12% for 4 periods is .635 and the present value of an ordinary annuity of 1 at 12% for 4 periods is 5.29 while the present value of 1 at 10% for 4 periods is .683 and the present value of an ordinary annuity of 1 at 10% for 4periods is 3.17. What is the present value of the new note payable on January 1, 2020

6,380,400.00

7,618,800.00

6,000,000.00

4,098,000.00