Facts
XYZ Inc. is getting ready to move its factory from its existing location to a new industrial free zone specially created by the government for manufacturers. To avail itself of the preferential licensing offered by the local governmental authorities as a reward for moving into the free trade zone and the savings in costs that would ensue (since there are no duties or taxes in the free trade zone), XYZ Inc. has to move into the new location before the end of the year. The lease on its present location is non cancel able and is for another two years from year end. The obligation under the lease is the annual rent of $100,000.
Required
Advise XYZ Inc. what amount, if any, it needs to provide at year end toward this lease obligation.