My professor says the answer is D. But I think it should be A.

On December 1, 2018, Goetz Corporation leased office space for 10 years at a monthly rental of $80,000. On that date Goetz paid the landlord the following amounts:

Rent deposit $ 80,000

First months rent 80,000

Last months rent 80,000

Installation of new walls and offices 640,000

$880,000

The entire amount of $880,000 was charged to rent expense in 2018. What amount should Goetz have charged to expense for the year ended December 31, 2018?

A)

$80,000

B)

$85,333

C)

$165,333

D)

$640,000