Olive enter into a 40-lease contract with Bernice. Per agreement, Olive will construct a building on Bernice's lot and operate the same for 40 years. Ownership of the building will transfer to Bernice upon the termination of the lease. The lease will not commence until the building is completed. Olive completed the building at a total cost of P 40,000,000 om January 1, 2017. The building is expected to be used over 50 years.

Olive enter into a 40-lease contract with Bernice. Per agreement, Olive will construct a building on Bernice's lot and operate the same for 40 years. Ownership of the building will transfer to Bernice upon the termination of the lease. The lease will not commence until the building is completed. Olive completed the building at a total cost of P 40,000,000 om January 1, 2017. The building is expected to be used over 50 years.

Olive enter into a 40-lease contract with Bernice. Per agreement, Olive will construct a building on Bernice's lot and operate the same for 40 years. Ownership of the building will transfer to Bernice upon the termination of the lease. The lease will not commence until the building is completed. Olive completed the building at a total cost of P 40,000,000 om January 1, 2017. The building is expected to be used over 50 years.




A. P200,000
B. P4,000,000
C. P8,000,000
D. 32,000,000


Answer: A. P200,000


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