The correct answer is option B.
Explanation:
The unearned rent revenue will be reported as a current liability. The reason behind this is that unearned revenue is prepaid revenue or advance payments for goods or services that the firm has to provide in the future. Β
Unearned revenue is a liability because the goods or services are yet to be provided and there is a chance that the order might get canceled, or seller might not be able to provide to them.