On December 1, 2006, Clark Co. leased office space for five years at a monthly rental of $60,000. On the same date, Clark paid the lessor the following amounts:
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|
First month’s rent |
$ 60,000 |
|
Last month’s rent |
60,000 |
|
Security deposit (refundable at lease expiration) |
80,000 |
|
Installation of new walls and offices |
360,000 |
What should be Clark’s 2006 expense relating to utilization of the office space?
- $ 60,000
- $ 66,000
- $120,000
- $140,000