On January 1, 2016, Wren Company leased a building

to Brill under an operating lease for ten years at

P500,000 per year, payable the first day of each lease
year. Wren paid P150,000 to a real estate broker as a
finder fee.

The building is depreciated P120,000 per year. Wren

incurred insurance and property tax expense totaling
P90,000 for the year.

What is the net rent income for 2016?

Conn Company owns an office building and normal] y Char
P3,000 per square meter per year for office space, SEs te,
Because the occupancy rate is low, Conn agreed to lease 100
meters to Hanson Company at P1,200 per square mete; for the
ate
year of a three-year operating lease. fitg,
Rent for remaining years will be at the P3,000 rate. Hanso into
the building on January 1, 2016, and paid the first year’ aids
advance. Tent in
What amount of rental revenue should Conn report from
€NSOn in
the income statement for the year ended September