Penfold Ltd's management is not sure how to deal with prepaid expenses in compliance with the accounting standards. On 1 July 2020, Penfolds ltd paid $180,000 in rent for coverage for the next three years. You are required to assist Penfold by answering the following two sub-questions:

A. Given the information provided above (Q8) what is the amount of rent expense that will appear in the income statement for the year ended 31 December 2020?

B. Given the information provided above (Q8) what is the amount of prepaid rent in the statement of financial position as at 31 December 2020