Pierce Corp., an accrual-basis, calendar-year C Corporation, had the following 2009 receipts: - 2010 advance rental payments for a lease ending in 2011: $250,000 - Lease cancellation payment from a 5-year lease tenant: $100,000 - Pierce had no restrictions on the use of the advance rental payments and renders no services connection with the rental income. What amount of gross income should Pierce report on its 2009 tax return? a. $350,000 b. $250,000 c. $100,000 d. $0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Pierce Corp., an accrual-basis, calendar-year C Corporation, had the following
2009 receipts:
- 2010 advance rental payments for a lease ending in 2011: $250,000
- Lease cancellation payment from a 5-year lease tenant: $100,000
- Pierce had no restrictions on the use of the advance rental payments and
renders no services connection with the rental income.
What amount of gross income should Pierce report on its 2009 tax return?
a. $350,000
b. $250,000
c. $100,000
d. $0
Transcribed Image Text:Pierce Corp., an accrual-basis, calendar-year C Corporation, had the following 2009 receipts: - 2010 advance rental payments for a lease ending in 2011: $250,000 - Lease cancellation payment from a 5-year lease tenant: $100,000 - Pierce had no restrictions on the use of the advance rental payments and renders no services connection with the rental income. What amount of gross income should Pierce report on its 2009 tax return? a. $350,000 b. $250,000 c. $100,000 d. $0
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