P QUESTION TWO Lindor Limited enters into a contract with Property Net Limited for the lease of three floors of an office building. The exact floors are specified in the contract and Property Net Limited is not permitted to relocate tenants to other floors of the building. The commencement date of the lease is 2nd January 2022 and the duration of the lease is for five years with the option to extend for a further five years. Lindor Limited is reasonably certain to exercise the option to extend the lease. 4 9

The lease payments are R50 000 per annum during the initial term and R55 000 per annum durin- 8 [25] 14C Cloudy pri o K end