On December 1, 2011, Blake Inc

question 38

Multiple Choice

On December 1, 2011, Blake Inc. signed an operating lease for a warehouse for ten years at $24,000 per year. Upon execution of the lease, Blake paid $48,000 covering rent for the first two years. How much should be shown in Blake's income statement for the year ended December 31, 2011, as rent expense?

• A) $0
• B) $2,000
• C) $24,000
• D) $48,000

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Definitions:

Selective Perception

The cognitive process by which individuals perceive what they want in the mass of stimuli around them, ignoring other information.

Interest

The sensation of being curious to acquire knowledge or information about someone or something.

Perception

The way in which something is regarded, understood, or interpreted by an individual or group.

Sensory Information

Describes data gathered through the senses such as sight, sound, touch, taste, and smell, which is used by organisms to interact with their environment.