Question

Office Palace, Inc., leased an all-in-one printer to a new customer, Ashley, on December 27, 2013. The printer was to rent for $600 per month for a period of 36 months beginning January 1, 2014. Ashley was required to pay the first and last month’s rent at the time the lease was signed. Ashley was also required to pay a $1,500 damage deposit. Office Palace must recognize ________ as income for the lease.

Answer 1

income for lease is $1200

Step-by-step explanation:

given data

rent = $600 per month

time period = 36 months

pay damage deposit = $1500

solution

we know here that that unearned income that is interest or rent

so it is taxed in the year in which we received

here Office received rent for first and last month of $600

so

income for lease is $600 × 2

income for lease is $1200