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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
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 |
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