Question: 46. A company enters into a three-year operating lease agreement effective January 1, year 1. The amounts due on the first day of each year

46. A company enters into a three-year operating lease agreement effective January 1, year 1. The amounts due on the first day of each year are $25,000 in year 1, $30,000 in year 2, and $35,000 in year 3. What amount, if any, is the related liability on the first day of year 2?

a. $0

b. $ 5,000

c. $60,000

d. $65,000

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