Main, a pharmaceutical company, leased office space from Ash. Main took possession and began to use the building on July 1, 2000. Rent was due the first day of each month. Monthly lease payments escalated over the 5-year period of the lease as follows:
|
Period |
Lease payment |
|
July 1, 2000 – September 30, 2000 |
$0 – rent abatement during move-in, construction |
|
October, 1, 2000 – June 30, 2001 |
17,500 |
|
July 1, 2001 – June 30, 2002 |
19,000 |
|
July 1, 2002 – June 30, 2003 |
20,500 |
|
July 1, 2003 – June 30, 2004 |
23,000 |
|
July 1, 2004 – June 30, 2005 |
24,500 |
What amount would Main show as deferred rent expense at December 31, 2003?
- $50,658
- $52,580
- $68,575
- $71,550