On January 1, 2013, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual rent payments on December 31 of each year. The payments are $20,500 the first year and increase by $800 per year. Benefits expected from using the office space are expected to remain constant over the lease term.
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Record Sweetwater's rent payment at December 31, 2017 (the fifth rent payment) and December 31, 2027 (the 15th rent payment).
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