Question: On January 1, 2011, Park Co. signed a ten-year operating lease for office space at $96,000 per year. The lease included a provision for additional

On January 1, 2011, Park Co. signed a ten-year operating lease for office space at $96,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of $500,000. Park’s sales for the year ended December 31, 2011, were $600,000. Upon execution of the lease, Park paid $24,000 as a bonus for the lease. Park’s rent expense for the year ended December 31, 2011, is

a. $ 98,400

b. $101,000

c. $103,400

d. $125,000

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