1. Alpha pays rent for numerous offices located throughout the city each year. Alpha pays rent in advance for some offices, and for others, rent is paid when due. And sometimes rent isn't paid until after it is due (but it is expensed and a payable is recorded at the time it is due). The following information is included in Alpha's December 31 balance sheets for 2022 and 2023:

Rent Payable

2022: $90,000

2023: $68,000

Prepaid Rent

2022: $64,000

2023: $80,000

During 2023, Alpha paid total cash of $120,000 for rent. In its income statement for the year ended December 31, 2023, how much rent expense should Alpha report on an accrual basis?

The answer should be 82,000, why is it 82,000?