On January 1, 2017, Wick Ltd

question 49

Short Answer

On January 1, 2017, Wick Ltd.leased a building to Candle Corp.for a ten-year term at an annual rental of $90,000.At the inception of the lease, Wick received $360,000 covering the first two years rent of $180,000 and a security deposit of $180,000.This deposit will NOT be returned to Candle upon expiration of the lease but will be applied to payment of rent for the last two years of the lease.What portion of the $360,000 should be shown as a current and long-term liability, respectively, in Wick's December 31, 2017 statement of financial position?

---

Definitions:

Down Syndrome

A genetic disorder caused by the presence of an extra 21st chromosome, leading to developmental and physical characteristics.

Middle Adulthood

A stage in the lifespan, typically from about ages 40 to 65, characterized by personal and professional growth, awareness of mortality, and preparation for late life.

Older Adulthood

A stage of life typically associated with retirement, marked by changes in physical health, cognitive function, and social roles.

Childhood

The stage of life that spans from infancy to puberty, characterized by growth, exploration, and learning.