Question

Stephanie will recognize $2,250 in year 0. This is the amount of the income she earned in year 0 ($9,000 ÷ 3 years = $3,000 x 9/12). What is the amount of income Stephanie earned in year 0?

1) $2,250
2) $3,000
3) $9,000
4) Cannot be determined

Answer 1

The amount of income Stephanie earned in year 0 is $2,250, calculated by dividing her total income of $9,000 by 3 years and adjusting for the portion of the year. Option 1.

Step-by-step explanation:

Income Calculation for Stephanie

The amount of income Stephanie earned in year 0 can be determined using the information provided. It's mentioned that she will recognize $2,250 in year 0 based on her income earned in that year, which is calculated by dividing the total income ($9,000) over 3 years and multiplying by 9/12 to adjust for the portion of the year. So the correct calculation would be $9,000 divided by 3 years equals $3,000 per year, then $3,000 multiplied by 9/12 gives us $2,250 which she recognizes in year 0. Therefore, the amount of income Stephanie earned in year 0 is $2,250(1).