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Consulting Entity Is Leasing Office Space from High-Rise Entity for $10,000

Question 10

Multiple Choice

Consulting Entity is leasing office space from High-Rise Entity for $10,000 a month. Consulting Entity signs a new lease on April 1, 20X1, and makes a payment for the first full year (i.e., $120,000) . How much revenue can High-Rise Entity recognize in 20X1 related to Consulting Entity's rent payment?


A) $0
B) $80,000
C) $90,000
D) $120,000

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