Max Realty paid $3,000 rent on a building in advance for two years on May 1.The amount that should be recorded as rent expense as of December 31 is:

Name: Max Realty paid $3,000 rent on a building in advance for two years on May 1.The amount that should be recorded as rent expense as of December 31 is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The rent expense for the period from May 1 to December 31 is 8 months. The monthly rent is $3,000 / 24 months = $125. Therefore, the rent expense for 8 months is $125 x 8 = $1,000.

Max Realty Paid $3,000 Rent on a Building in Advance