Company A leased a machine from Company B for a period of 4 years. Annual lease payment is OMR 3,200.The lease is classified as operating lease. What is the journal entry for annual lease payment received in the books of Company B?

a.

Cash account Debit 3,200 Lease obligation account 3,200

b.

Rent Expense Debit 3,200 Cash Account Credit 3,200

c.

Cash Account Debit 3,200 Rent Income 3,200

d.

None of the option is correct