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Tower Inc. is a publicly traded company that owns offices and leases office space to lessees. On June 30, Year 1, a customer entered into
Tower Inc. is a publicly traded company that owns offices and leases office space to lessees. On June 30, Year 1, a customer entered into a five-year lease for a small office and moved into the space. Starting September 30, Year 1, the lessee will pay Tower $1,000 per month. Tower has determined the lease should be classified as an operating lease. What is the rental revenue that Tower will recognize for the year ended December 31, Year 1 regarding the lease? A. $6,000 B. $5,700 C. $3,000 D. No rental revenue is recognized for the lease in Year 1
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