On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor...

On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor permitted Trend to occupy the premises rent-free from October 1 to December 31, 2017. Improvements were made at the leased office at a total cost of P300,000, the improvements were finished on October 31, 2017. It was estimated that the improvements will be useful for 5 years. For the year ended December 31, 2017, Trend should record total expenses related to the lease facilities of



10,000
87,750
97,750
100,000