Ryan CorpEnters into an Agreement with Montgomery Corp

Ryan Corp.enters into an agreement with Montgomery Corp.to lease some office space in town.There are currently a large number of vacant units which allowed Ryan Corp.to obtain favourable lease terms.The agreement called for payments of $150,000 per year for five years; however, given the large number of vacancies, Montgomery Corp.forgave the first year's lease payment.Prepare the journal entries for the five years of the lease.

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