McMichael Exhibits Inc

Multiple Choice

McMichael Exhibits Inc.received its annual property tax bill for $26,200 in January.It was paid when due on March 31.McMichael Exhibits year end is Dec 31.The Dec 31 balances should be

A) $6,550 for Prepaid Property Tax; $19,650 for Property Tax Expense.
B) $0 for Prepaid Property Tax; $0 for Property Tax Payable.
C) $6,550 for Prepaid Property Tax; $6,550 for Property Tax Payable.
D) $2,183 for Prepaid Property Tax; $24,017 for Property Tax Expense.