On december 31, winters company's prepaid rent account had a balance before adjustment of $6,000. three months' rent was paid in advance on december 1, the first day of the lease term. the adjusting entry needed on december 31 is:

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?