What amount is the deferred rent liability on the first day

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Reference no: EM132806555

Problem 1: A company enters into a three-year operating lease agreement effective January 1, year 1. The amounts due on the first day of each year are $25,000 in year 1, $30,000 in year 2, and $35,000 in year 3. What amount, if any, is the deferred rent liability on the first day of year 2?

A. $0

B. $5,000

C. $60,000

D. $65,000

Reference no: EM132806555

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