Which of the following is the best example of a service firm that attracts customers with low base prices and then piles on additional fees

Which of the following statements about annuities is NOT correct?

A) The withdrawal rule on annuity cash value is FIFO. B) Annuities may be appropriate investments for both individuals and corporations. C) The 10% penalty tax is imposed on the interest earned and withdrawn, not on the principal. D) The 10% penalty tax on early distributions does not apply to distributions made to the annuity owner after separating from service from the employer after the owner reaches age 59½.

Clyde operated a food distribution business. He leased a small warehouse in 2015 for $60,000 per year for a 3-year term. The lease was to start on July 1, 2015. Clyde paid the first 2 years' rent in advance in May 2015. Clyde then began to make monthly payments of $5,000 starting on July 1, 2017, and continuing on the first of the month for the balance of 2017. What rent expense may Clyde claim in 2017?

a. $60,000 b. $50,000 c. $30,000 d. None of the answers are correct