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
Ans: a. $60,000
Business
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When a company purchases land with the intention of developing it for a particular use, interest costs associated with those expenditures qualify for interest capitalization.
a. true b. false
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According to Table 8-2, which describes a media selection problem, what would the objective function be?
A) Maximize 10T + 7N + 20R B) Minimize 10T + 7N + 20R C) Minimize 800T + 1000N + 400R D) Minimize 7000T + 8500N + 3000R E) Maximize 7000T + 8500N + 3000R
Business