Covid 19 Accounting For Lease Modification:

Senorita Makinarya Company closed its stores on April 15, 2020. This is after the national government declared a strict lockdown in all areas nationwide. After two months of strict lockdown, the government gradually allow the businesses to operate following strict health protocols. Senorita Makinarya Company is excited to reopen but funds are not enough to meet its lease obligation.

Instruction:

1. Discuss your answer. Support your answer with standards on lease modification. Ensure that the standards are clearly explained point by point.