What is the prepaid rent amount recognized on the company

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Question - The Flip-Cup Company signed a rental contract to rent from another company a building to be used by Flip-Cup for exciting and challenging flip-cup tournaments. The contract was signed and paid on 7.1.2019 and the rent is for four years beginning 7.1.2019. The Flip-Cup Company paid $1,000,000 and recorded this payment on the payment day in a Prepaid Rent account. What is the Prepaid Rent amount recognized on the company's balance sheet as of 12.31.2019?

Reference no: EM133171851

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