On December 1, 2011, Blake Inc

On December 1, 2011, Blake Inc. signed an operating lease for a warehouse for ten years at $24,000 per year. Upon execution of the lease, Blake paid $48,000 covering rent for the first two years. How much should be shown in Blake's income statement for the year ended December 31, 2011, as rent expense?

A) $0
B) $2,000
C) $24,000
D) $48,000

Correct Answer:

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