1. On January 2, 20x9, Pakito (lessee) entered into a 5-year lease for drilling equipment.

Pakito recognized a lease

liability of ₱240,000 at the commencement date. This amount includes the ₱10,000 exercise price of a purchase
option. At the end of the lease, Pakito expects to exercise the purchase option. Pakito estimates that the
equipment's fair value will be ₱20,000 at the end of its 8-year life. Pakito regularly uses straight-line depreciation
on similar equipment. For the year ended December 31, 20x9, what amount should Pakito recognize as
depreciation expense on the leased asset?
a. 48,000 b. 46,000 c. 30,000 d. 27,500

question here is what useful life will you use?

2. In the long-term liabilities section of its balance sheet at December 31, 20x9, Miya bb Co. reported a lease liability
of ₱75,000, net of current portion of ₱1,364. Payments of ₱9,000 were made on both January 2, 2x10, and January
2, 2x11. Miya bb's incremental borrowing rate on the date of the lease was 11% and the lessor's implicit rate,
which was known to Miya bb, was 10%. In its December 31, 2x10, balance sheet, what amount should Miya bb
report as lease liability, net of current portion?
a. 66,000 b. 73,500 c. 73,636 d. 74,250

amortize for 1 year lang.

3. RicMond Co. leased equipment for its entire nine-year useful life, agreeing to pay ₱50,000 at the start of the lease
term on December 31, 20x8, and ₱50,000 annually on each December 31 for the next eight years. The present
value on December 31, 20x8, of the nine lease payments over the lease term, using the rate implicit in the lease
which RicMond knows to be 10%, was ₱316,500. The December 31, 20x8, present value of the lease payments
using RicMond's incremental borrowing rate of 12% was ₱298,500. RicMond made a timely second lease
payment. What amount should RicMond report as lease liability in its December 31, 20x9, balance sheet?
a. 350,000 b. 243,150 c. 228,320 d. 0
amortize lang uli

4. On January 2, 20x5, MarXters Co. as lessee signed a five-year noncancelable equipment lease with annual
payments of ₱200,000 beginning December 31, 20x5. The five lease payments have a present value of ₱758,000 at
January 2, 20x5, based on interest of 10%. What amount should MarXters report as interest expense for the year
ended December 31, 20x5?
a. 0 b. 48,000 c. 55,800 d. 75,800
mmultply mo lang

5. On January 1, 20x1, JEAN-C2 Co. enters into a 4-year lease of office equipment. The rent in 20x1 is ₱10,000 and
shall increase by 10% annually starting on January 1, 20x2. Rentals are payable at the end of each year. JEAN-C2
Co. pays the lessor a lease bonus of ₱5,000 on January 1, 20x1. JEAN-C2 Co. opts to use the practical expedient
allowed under PFRS 16 for leases of low value assets. How much is the lease expense in 20x1?
a. 10,000 b. 11,000 c. 11,603 d. 12,853