Multiple Choice Question 101

On January 4, 2017, Cullumber Company leased a building to Concord Corporation for a ten-year term at an annual rental of $188000. At inception of the lease, Cullumber received $752000 covering the first two years' rent of $376000 and a security deposit of $376000. This deposit will not be returned to Concord upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the $752000 should be shown as a current and long-term liability in Cullumber's December 31, 2017 balance sheet?

Current LiabilityLong-term Liability

$188000

$376000

$376000

$376000

$376000

$188000

$0$752000