1. On October 1, 2016, a company pays $13,600 of rent 4 months in advance. Assuming that the companys accounting period ends on December 31, 2016, what will be the ending balances on the financial statements?

a. Prepaid rent of $13,600 on its balance sheet at December 31, 2016

b. Rent expense of $3,400 on its income statement for 2016

c. Prepaid rent of $3,400 on its balance sheet at December 31, 2016

d. Rent expense of $13,600 on its income statement for 2016