The property company Belcour leases out an office floor under an operating lease with a lease term of 4 years from 1 January 20X1. It grants a rent-free period of 1 year; thereafter, the lessee pays 60,000 a year, at the beginning of each year. Belcour applies the straight-line basis. Compute the annual lease income and the accrued income asset balance at 31 December 20X2.
- Lease term
- 4
- Rent-free period
- 1
- Annual payment after the rent-free period (payable in advance)
- 60,000