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WITCHER [35]
3 years ago
12

Howard Inc. had prepaid rent of $79,000 and $88,000 at the end of Year 1 and Year 2, respectively. During Year 2, Howard recorde

d $244,000 in rent expense in its income statement. Cash outflows for rent in Year 2 were:
Business
1 answer:
vichka [17]3 years ago
7 0

Answer:

the Cash outflows for rent in Year 2 is $253,000

Explanation:

The computation of the Cash outflows for rent in Year 2 is shown below:

Prepaid rent at year 2 $88,000

Add: rent expense $244,000

Less: prepaid rent in year 1 -$79,000

Cash outflows for rent in year 2 $253,000

Hence, the Cash outflows for rent in Year 2 is $253,000

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