Question

The Hathaway Corporation started business on January 1, Year One, as a restaurant in Toledo, Ohio. During Year One, the company paid $10,000 each month to rent a building to serve as its kitchen and dining room. How much should Hathaway report as its total expenses for Year One?

a. Zerob. $10,000 c. $120,000 d. $100,000

Answer 1

The Hathaway Corporation's total expenses for Year One for renting its building are calculated by multiplying the monthly rent of $10,000 by 12, resulting in a total of $120,000 for the year.

Step-by-step explanation:

The Hathaway Corporation, a restaurant in Toledo, Ohio, paid a monthly rent of $10,000 for its building.

To calculate the total expenses for Year One, we must multiply the monthly rent by the number of months in a year. There are 12 months in a year, so the calculation would be as follows:

$10,000 per month x 12 months = $120,000 for Year One.

Therefore, the correct answer to the question of how much Hathaway should report as its total expenses for Year One is $120,000, which corresponds to option (c).