On January 1, 2017, Mars Inc

question 33

Short Answer

On January 1, 2017, Mars Inc.leased a building to Vulcan Corp.for a ten-year term at an annual rental of $160,000.At inception of the lease, Mars received $640,000, which covered the first two years rent of $320,000 and a security deposit of $320,000.This deposit will not be returned to Vulcan 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 $640,000 should be shown as a current and long-term liability in Mars's December 31, 2017 statement of financial position?

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Definitions:

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Unequal-variances Test

A statistical method used when comparing two groups or samples that are assumed to have different variances, to evaluate if their means are significantly different.

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T-test

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