How should noreen report the deferred rent amount

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Reference no: EM132760636

Question - On September 1, year 1, Noreen Ltd. collected $78,300 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on February 28, year 2, at which time the lease contract may be renewed. Noreen's fiscal year ends on December 31. If the amount received on September 1, year 1, had covered a period of 18 months, how should Noreen report the deferred rent amount on its statement of financial position as at December 31, year 1?

Reference no: EM132760636

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