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Question - On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of $90,000. On that date Perez paid the landlord the following amounts:
Rent deposit $90,000
First month's rent 90,000
Last month's rent 90,000
Installation of new walls and offices 495,000
$765,000
The entire amount of $765,000 was charged to rent expense in 2016. What amount should Goetz have charged to expense for the year ended December 31, 2016?
A. $90,000
B. $94,125
C. $184,125
D. $495,000
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