Lease right; leasehold improvement On January 1, 2017, Anchor Company signed a 12-year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or...

Extracted text: Lease right; leasehold improvement On January 1, 2017, Anchor Company signed a 12-year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or before January 1, 2020. During January 2019, the entity made substantial improvement to the warehouse. The cost of the improvement was P540,000 with an estimated useful life of 15 years. On December 31, 2019, the entity intended to exercise the renewal option. The entity has taken a full year depreciation on this leasehold improvement for 2019. On December 31, 2019, what is the carrying amount of the leasehold improvement? Show your computation.