A business compiling its financial statements for the year to 31 July each year pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from $60,000 per year to $72,000 per year as from 1 October 2003. What figure should appear for rent expense in the business income statement for the year ended 31 July 2004?
A $69,000 B $62,000 C $70,000 D $63,000 C (2 x 5,000) + ( 10 x 6,000) |