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On January 1, 2022, WAO Company leased a building to OOF Company for a ten year term at an annual rental of 500,000. At inception of the lease, WAO received 2,000,000 covering the first two years' rent of 1,000,000 and a security deposit of 1,000,000.
Problem 1: What portion of the 2,000,000 should be reported as current liability on December 31, 2022?
a. 1,500,000
b. 1,000,000
c. 500,000
d. 0
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