On September 1,2016,Custom Shirts Inc

question 27

Multiple Choice

On September 1,2016,Custom Shirts Inc.entered into a lease agreement appropriately classified as an operating lease.The lease term is three years.The annual payments are (a) $20,000 for year 1, (b) $24,000 for year 2,and (c) $28,000 for year 3.How much rent expense will Custom Shirts recognize for 2016?

• A)$ 6,667.
• B)$24,000.
• C)$20,000.
• D)$ 8,000.

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Definitions:

Scientific Approach

A method of inquiry that employs observation, experimentation, and data analysis to gather empirical evidence.

Clarity and Precision

Key principles in communication and thought that involve being clear in expression and exact in detail and measurement.

Independent Variable

In an experimental setting, the variable that is manipulated or changed by the researcher to explore its effects on a dependent variable.

Experimental Group

A group in a scientific study that receives the treatment or condition being tested, as opposed to a control group, which does not.