Skip rented an office building to Chris for $1,000 per month. On December 29, 2018, Skip received a deposit of $7,000 in addition to the first and last months' rent. Occupancy began on January 2, 2019. On July 15, 2019, Chris closed his business and filed for bankruptcy. Skip had collected rent for February, March, and April on the first of each month. Skip had received May rent on May 10, but collected no payments afterwards. Skip withheld $1,000 from the deposit because of damage to the property and $500 for unpaid rent. He refunded the balance of the deposit to Chris. Requirement What amount would Skip report as gross income for2018? for 2019?
Skip rented an office building to Chris for $1,000 per month. On December 29, 2018, Skip received a deposit of $7,000 in addition to the first and last months' rent. Occupancy began on January 2, 2019. On July 15, 2019, Chris closed his business and filed for bankruptcy. Skip had collected rent for February, March, and April on the first of each month. Skip had received May rent on May 10, but collected no payments afterwards. Skip withheld $1,000 from the deposit because of damage to the property and $500 for unpaid rent. He refunded the balance of the deposit to Chris. Requirement What amount would Skip report as gross income for2018? for 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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closed his business and filed for bankruptcy. Skip had collected rent for February, March, and April on the first of each month. Skip had received May rent on May 10, but collected no payments afterwards. Skip withheld
$1,000 from the deposit because of damage to the property and $500 for unpaid rent. He refunded the balance of the deposit to Chris.
Requirement What amount would Skip report as gross income for2018? for
2019?
Begin by selecting the labels to show the items that will comprise
Skip's 2018 gross income, and then enter the amounts to compute the
2018 gross income amount. (If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.)
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Taxable item
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2018 Gross income
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Total gross income
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