Problem 12-18 (AICPA Adapted) Barnel Company owns and manages apartments. On signing a lease, each tenant must pay the first month and last month rent and a P50,000 refundable security deposit. The security deposit is rarely refundable in total because deaning costs of P15,000 per apartment are almost always deducted. About 30% of the time, the tenants are also charged for damages to the apartment which typically cost P10,000. Ifa one-year lease is signed on a P90,000 per monțh apartment, what amount should be reported as refundable security deposit? a 140,000 b. 50,000 C. 35,000 d. 32,000 10/19
Problem 12-18 (AICPA Adapted) Barnel Company owns and manages apartments. On signing a lease, each tenant must pay the first month and last month rent and a P50,000 refundable security deposit. The security deposit is rarely refundable in total because deaning costs of P15,000 per apartment are almost always deducted. About 30% of the time, the tenants are also charged for damages to the apartment which typically cost P10,000. Ifa one-year lease is signed on a P90,000 per monțh apartment, what amount should be reported as refundable security deposit? a 140,000 b. 50,000 C. 35,000 d. 32,000 10/19
Chapter3: Income Sources
Section: Chapter Questions
Problem 96IIP
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