To Take Advantage of a Zero Percent Rent Increase for the Coming

Multiple Choice

To take advantage of a zero percent rent increase for the coming year, a company paid, at year-end, $450,000 rent for the first three months of the next year.
What would the effect of this transaction on the company's year-end accounting equation?

A) No effect on Assets; $450,000 decrease in Liabilities; $450,000 increase in Stockholders' Equity
B) $450,000 increase in Assets; $450,000 increase in Liabilities; No effect on Stockholders' Equity
C) $450,000 increase in Assets; No effect on Liabilities; $450,000 increase in Stockholders' Equity
D) No effect on Assets; No effect on Liabilities; No effect on Stockholders' Equity