On January 1, 2018, Ant-Man Company leased a machine to Wasp Company for a four-year period. The annual rentals will be paid by the lessee beginning December 31, 2018. The lease agreement called for a 10% increase in annual rental per annum. The rental due on December 31, 2021 was P266,200.

1. What is the rental payment due on December 31, 2019? A. 181,818 B. 200,000 C. 220,000 D. 242,000

2. What is the rental income for the year ended 2020? A. 200,000 B. 220,000 C. 232,050 D. 242,000

3. What amount shall be reported as accrued rent payable on December 31, 2019? A. 0 B. 32,050 C. 34,150 D. 44,100

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