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On January 1 , 2 0 2 0 , Wilson Co . leases equipment to Nice Inc. The lease term is 4 8 months, and

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On January 1,2020, Wilson Co. leases equipment to Nice Inc. The lease term is 48 months, and the rent payment will be $1,800 per month. Wilson (lessor) classifies it as an operating lease. Wilson offers a 6-month rent-holiday. Thus, Nice does not need to make any rent payments for the first 6 months. The first monthly rent at $1,800 will be paid at the beginning of 7 th month. Wilson should recognize rent revenue from this lease arrangement for the first quarter on 331?2020 at
$5,400.
50.
$6,075.
$4,725.
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