Mortgage Payable is a contra - liability account. ... O True O False The ending inventory in Year 1 is the beginning inventory in Year 2. .... True False Green Realty paid $6,000 rent on a building in advance for two years on May 1. The amount that should be recorded as rent expense as of December 31 at the end of Year 1 is: O A. $1,750. B. $6,000 C. $2,000 D. $3,000