On July 1, 2015 Walton Company leased office premises for a three-year period at an annual rental of P360,000 payable on July 1 each year. The first rent payment was made July 1, 2015. Additionally on July 1, 2015 the entity paid P240,000 as a lease bonus to obtain a three year lease instead of the lessor's usual term of six years. On December 31, 2015 what amount should be reported as prepaid rent? a. 180.000 b. 220,000 C. 240.000 d. 380.000