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  1. business
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  3. on january 1,2023, riverbed ltd., a private compan

On January 1,2023, Riverbed Ltd., a private company following ASPE, leased a building to Candle...

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Accounting

On January 1,2023, Riverbed Ltd., a private company following ASPE, leased a building to Candle Corp. for a ten-year term at an
annual rental of $86500. At the inception of the lease, Riverbed received $346000 covering the first two years rent of $173000 and a
security deposit of $173000. This deposit will NOT be returned to Candle upon expiration of the lease but will be applied to payment
of rent for the last two years of the lease. What portion of the $346000 should be shown as a current and long-term liability,
respectively, in Riverbed's December 31,2023 statement of financial position?
Current Liability. Long-term Liability.
$0$346000
$86500$173000
$173000$173000
$173000$86500
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