On December 1, 2015, Goetz Corporation Leased Office Space for 10

On December 1, 2015, Goetz Corporation leased office space for 10 years at a monthly rental of $90,000. On that date Goetz paid the landlord the following amounts: $$\begin{array} { l r } \text { Rent deposit } & \$ 90,000 \\\text { First month's rent } & 90,000 \\\text { Last month's rent } & 90,000 \\\text { Installation of new walls and offices } & 720,000 \\& \$ 990,000\end{array}$$ The entire amount of $990,000 was charged to rent expense in 2015. What amount should Goetz have charged to expense for the year ended December 31, 2015?

A) $90,000
B) $96,000
C) $186,000
D) $720,000

Correct Answer:

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