Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,000 per month. Under the lease terms, Carlos pays 18 months’ rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021?
a. $12,000
b. $18,000
c. $1,000
d. $13,000

Sagot :

Parrain

The amount that Carlos can deduct for rent in the year 2021, based on his annual rent is c.$1,000.

Rent in 2021

When recording rent, you can only record it for the period that the financial statement is for.

The rent given is for 18 months from December 2021 which means that it will be for only a single month in December.

The rent will therefore be a rental amount for a month:

= Rental amount / Number of months

= $18,000 / 18

= $1,000

In conclusion, option C is correct.

Find out more on prepaid rent at https://brainly.com/question/1079277.

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.