Dream Design Inc

Multiple Choice

Dream Design Inc. received its annual property tax bill for $16,800 in January. It was paid when due on March 31. Dream Design's year end is Dec 31. The Dec 31 balances should be

A) $4,200 for Prepaid Property Tax, $12,600 for Property Tax Expense.
B) $4,200 for Prepaid Property Tax , $4,200 for Property Tax Payable.
C) $0 for Prepaid Property Tax, $0 for Property Tax Payable.
D) $1,400 for Prepaid Property Tax, $15,400 for Property Tax Expense.