Question: Mary has forgotten to put rental expenses on the budget statement this month. Comment on the appropriateness of her action under each of the following scenarios:
i) Mary owns the shop , Mary budgets a rental expense of 0.
ii) Mary rents the shop and he budgets a rental expense of $4000. The rental contract, signed in late 2012 and it last for 3 years,Peter cannot terminate the contract nor sublet the shop to other people during this 3 years . The monthly rental is $4000 and the rent for this month has not been paid yet when the budget statement above was drawn up.
iii) Mary owns the shop and she budgets a rental expense of $5000 as the shop is mortgaged to the bank and her monthly mortgage repayment is $5000 per month and it last for 6 years.