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owner of a parcel of eal estate entered into a ten vear lease

owner of a parcel of eal estate entered into a ten vear lease

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. On June 10, 2021, Anne Able, owner of a parcel of real estate, entered into a ten year lease to rent it to a third party. During 2021, Anne received payment of $12,000 to cover rent for July - December, 2021; payment of $24,000 representing advance rent for the 10th (final) year of the lease term; and $5,000 as a security deposit to be returned to the tenant at the the end of the ten year lease term if the property has not suffered significant damage, How much gross income should Anne report on her 2021 Form 1040? A $41,000 17,000 36,000 12,000 None of the above C D E
Transcribed Image Text:1. On June 10, 2021, Anne Able, owner of a parcel of real estate, entered into a ten year lease to rent it to a third party. During 2021, Anne received payment of $12,000 to cover rent for July - December, 2021; payment of $24,000 representing advance rent for the 10th (final) year of the lease term; and $5,000 as a security deposit to be returned to the tenant at the the end of the ten year lease term if the property has not suffered significant damage, How much gross income should Anne report on her 2021 Form 1040? A $41,000 17,000 36,000 12,000 None of the above C D E
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