Carly Design Inc

Multiple Choice

Carly Design Inc. received its annual property tax bill for $8,400 in January. It was paid when due on March 31. Carly Design's year end is Dec 31. The Dec 31 account balances should be

A) $0 for Prepaid Property Tax, $0 for Property Tax Payable
B) $2,100 for Prepaid Property Tax, $6,300 for Property Tax Expense
C) $2,100 for Prepaid Property Tax, $2,100 for Property Tax Payable
D) $700 for Prepaid Property Tax, $7,700 for Property Tax Expense