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The rent is $24,0 per year and the business paid cash one year in advance on1 October2013. On December312013 how much of that payment should be recorded as a rental expense and how much should be deferred. A. Expense = $24,0, Deferred = $0 B. Expense = $12,0, Deferred = $12,0 C. Expense = $6,0, Deferred = $18,0 D. Expense = $18,0, Deferred = $6,0
As per the above 4 options opetion "A" will be best answer. Considering financial period as 01 october XXX to 30 September XXXX.
C
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