On November 1, Year 1, Danny Company paid $12,000 cash to rent an office for a year starting immediately. Indicate whether each of the following statements about this transaction is true or false. a)Danny's Year 1 income statement would not be affected by this transaction.b)Danny's Year 1 statement of cash flows would be affected by this transaction.c)This transaction is an asset exchange transaction.d)$12,000 of rent expense will be recorded in Year 2.e)This transaction increases Danny's liabilities.

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The Answer of On November 1, Year 1, Danny Company paid $12,000 cash to rent an office for a year starting immediately. Indicate whether each of the following statements about this transaction is true or false. a)Danny's Year 1 income statement would not be affected by this transaction.b)Danny's Year 1 statement of cash flows would be affected by this transaction.c)This transaction is an asset exchange transaction.d)$12,000 of rent expense will be recorded in Year 2.e)This transaction increases Danny's liabilities.

On November 1, Year 1, Danny Company Paid $12,000 Cash