Find what rent revenue should be reported as

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Reference no: EM132775854

Problem 1: On August 1, 20X0, Metro, Inc. leased a luxury apartment unit to Klum. The parties signed a 1-year lease beginning September 1, 20X0, for a $1,000 monthly rent payable on the first day of the month. At the August 1 signing date, Metro collected $540 as a nonrefundable fee for allowing Klum to sign a 1-year lease (the normal lease term is three years) and $1,000 rent for September. Klum has made timely payments each month, but prepaid January's rent on December 20. In Metro's 20X0 income statement, rent revenue should be reported as

A. $4,000

B. $4,180

C. $4,540

D. $5,180

Reference no: EM132775854

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