On June 30, 2020, Sharma Corp

Multiple Choice

On June 30, 2020, Sharma Corp. sold equipment for its fair value of $ 300,000. The equipment had a book value of $ 500,000 and a remaining useful life of 10 years. The same day, Sharma leased back the equipment at $ 6,000 per month for 5 years with no option to renew the lease or repurchase the equipment. Sharma's equipment rent expense for this equipment for the year ended December 31, 2020, should be

A) $ 72,000.
B) $ 36,000.
C) $ 30,000.
D) $ 24,000.