A 5-Year Lease Contract Is Signed on 1/1/x1 Calling for $4,000

question 73

Multiple Choice

A 5-year lease contract is signed on 1/1/x1 calling for $4,000 to be paid by the lessee on 12/31/x1, and $6,000 on 12/31/x2, x3, and x4.Total lease payments over the lease term are therefore $22,000.The lessee expects to use the leased asset evenly throughout the lease term, which ends 12/31/x4.No payment is due in 20x2.The entry recorded by the lessee for this operating lease, on 12/31/x1 includes which of the following?

• A)dr.rent expense $4,400
• B)dr.rent expense $4,000
• C)cr.rent payable $200
• D)dr.prepaid rent $400

---

Definitions:

Subcutaneous

Located or applied under the skin's surface, often referring to tissues, injections, or implants.

Intramuscular

Pertaining to an injection given directly into the muscle tissue.

Inhalation

The process of breathing in, allowing air or other substances to enter the lungs.

Intravenous

Administered within or into a vein.