Calcuation of earnings of Lakeside | ||
(A) | Office Space Cost | 29,00,000 |
(B) | Useful Life ( In years) | 25 |
(C) | Depreciation Allowable Each Year | 1,16,000 |
(D) | Quarterly Realization of Rent | 34,000 |
(E) | Revenue in Year 1 | 1,36,000 |
Effect On earnings (E-C) | 20,000 |
So the earnings of Lakeside would Increase by $20,000 for the first year.
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under...
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