On December 1, year 1, Tom V. Company entered into an operating lease for office...
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Accounting
On December 1, year 1, Tom V. Company entered into an operating lease for office space for its executives for 10 years at a monthly rental of $300,000. On that date, Tom V. paid the landlord the following amounts:
First month's rent
$300,000
Last month's rent
300,000
Installation of new carpet
600,000
$1,200,000
The entire amount was charged to rent expense in year 1. What amount should Tom V. have charged to expense for the year?
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