On December 1, 2023, Oriole Corp. leased office space for 10 years at a monthly rental of $43000, under an operating lease. On thatdate Oriole paid the landlord the following amounts:Rent deposit$43000First month's rent43000Last month's rent43000Installation of new walls and offices157200$286200Oriole debited the entire $286200 payment to Prepaid Rent.How much should Oriole Corp recognize as rent expense for the year ended December 31, 2023?○ $28620○ $44310○ $161500○ $43000

PREPAID RENT Amount of expenditure which is paid before the actual due date that is Prepaid Expense.…

On December 1, 2023, Oriole Corp. leased office space for 10 years at a monthly rental of $43000, under an operating lease. On that date Oriole paid the landlord the following amounts: Rent deposit First month's rent $43000 43000 Last month's rent 43000 Installation of new walls and offices 157200 $286200 Oriole debited the entire $286200 payment to Prepaid Rent. How much should Oriole Corp recognize as rent expense for the year ended December 31, 2023? ○ $28620 ○ $44310 ○ $161500 ○ $43000

On December 1, 2023, Oriole Corp. leased office space for 10 years at a monthly rental of $43000, under an operating lease. On that date Oriole paid the landlord the following amounts: Rent deposit First month's rent $43000 43000 Last month's rent 43000 Installation of new walls and offices 157200 $286200 Oriole debited the entire $286200 payment to Prepaid Rent. How much should Oriole Corp recognize as rent expense for the year ended December 31, 2023? ○ $28620 ○ $44310 ○ $161500 ○ $43000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

On December 1, 2023, Oriole Corp. leased office space for 10 years at a monthly rental of $43000, under an operating lease. On that
date Oriole paid the landlord the following amounts:
Rent deposit
$43000
First month's rent
43000
Last month's rent
43000
Installation of new walls and offices
157200
$286200
Oriole debited the entire $286200 payment to Prepaid Rent.
How much should Oriole Corp recognize as rent expense for the year ended December 31, 2023?
○ $28620
○ $44310
○ $161500
○ $43000

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