On January 1, 2017, Star Company leased a building to Cosmos Inc. under an operating lease for ten years at P500,000 per year, payable the first day of each lease year. Star Company paid P150,000 to a...

On January 1, 2017, Star Company leased a building to Cosmos Inc. under an operating lease for ten years at P500,000 per year, payable the first day of each lease year. Star Company paid P150,000 to a real estate broker as a finder's fee. The building is depreciated P120,000 per year. For 2017 Star incurred insurance and property tax expense totaling P90,000, Star's net rental income for 2017 should be


a. 275, 000
b. 290,000
c. 350,000
d. 365,000