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The Company leased office premises to another entity for a five-year term beginning January 1, 2023. Under the terms of operating lease, rent for the
The Company leased office premises to another entity for a five-year term beginning January 1, 2023. Under the terms of operating lease, rent for the dirst year is $300,000 and rent for years 2 through 5 is $900,000. However, as an inducement to enter the lease, The Company granted the lessee the first six months of the lease rent-free. On December 31, 2025, what amount should be reported as rent receivable?
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