Rent expense in Marrin Company's 2014 income statement is $420,000. If Prepaid Rent was $70,000 at 31 December 2013, and is $95,000 at 31 December 2014, the cash paid for rent during 2014 is:

Question

Quizplus · Accepted Answer

The cash paid for rent during 2014 can be calculated as:

Rent expense for 2014 = $420,000
Prepaid Rent at 31 December 2013 = $70,000
Prepaid Rent at 31 December 2014 = $95,000

Total rent paid during 2014 = Rent expense for 2014 + Increase in prepaid rent during 2014
= $420,000 + ($95,000 - $70,000)
= $445,000

Therefore, the correct answer is B) $445,000.

Rent Expense in Marrin Company's 2014 Income Statement Is $420,000