How much rent receivable should be recognized by SNOWMAN in 2021?

- 0 -

80,000

76,000

68,000

64,000

SNOWMAN Company leased office premises to JACK FROST Inc. for a 5-year term beginning January 2, 2021. Under the terms of the operating lease, rent for the first year is P80,000 and rent for years 2 through 5 is 125,000 per annum. However, as an inducement to enter the lease, SNOWMAN granted JACK FROS the first six months of the lease rent-free. JACK FROST also paid a lease bonus of P60,000