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On January 1, 2020, SK Company Signed a 10-year operating lease for an office space at P960,000 per year. The lease included a provision for

On January 1, 2020, SK Company Signed a 10-year operating lease for an office space at P960,000 per year. The lease included a provision for a rent where 5% of annual sales in excess of P5,000,000. SK sales for the year ended amounted to P6,000,000. Upon Execution of the lease, SK Paid P250,000 as a Lease Bonus. And the Lessor Provided 1 Year Lease Free Rent.

How much is the Total Rent Expense of the year of 2020?

How much is the Total Accrued/Prepaid Rent as December 31, 2020? Note" Assuming Contingent Rent would be paid immediately"

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