Dunemer has leased out a storage terminal under an operating lease since 1 January 20X1, for four years, with stepped payments due each 1 January: 60,000, 70,000, 80,000 then 90,000. On 1 January 20X3, at the lessee's request, the lease is extended by two years and the payment becomes fixed at 65,000 a year, payable in advance, for the four remaining years. Determine accrued income at 31 December 20X2 and the annual lease income of the modified lease.
- Payment 20X1
- 60,000
- Payment 20X2
- 70,000
- Original payment 20X3
- 80,000
- Original payment 20X4
- 90,000
- Fixed annual payment after the modification
- 65,000