Multiple Choice
On September 1,2016,Custom Shirts Inc.entered into a lease agreement appropriately classified as an operating lease.The lease term is three years.The annual payments are (a) $20,000 for year 1, (b) $24,000 for year 2,and (c) $28,000 for year 3.How much rent expense will Custom Shirts recognize for 2016?
A) $ 6,667.
B) $24,000.
C) $20,000.
D) $ 8,000.
Correct Answer:
Verified
Correct Answer:
Verified
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