On January 1, 2021, Bonita Industries leased a building to Carla Vista Co. for a ten-year term at an annual rental of $180000. At inception of the lease, Bonita received $720000 covering the first two years' rent of $360000 and a security deposit of $360000. This deposit will not be returned to Carla Vista 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 $720000 should be shown as a current and long-term liability, respectively, in Bonita's December 31, 2021 balance sheet?

Current Liability

Long-term Liability

a.

$360000

$180000

b.

$0

$720000

c.

$180000

$360000

d.

$360000

$360000