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What amounts are included in Ralph's gross income this year if a tenant signs Lease 1 on December 1 and makes timely payments under that lease?

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Final answer:

Ralph's gross income for this year would include the December rent payment made under Lease 1. Subsequent payments would be counted in the corresponding year's income.

Step-by-step explanation:

To determine what amounts are included in Ralph's gross income this year from a lease signed by a tenant, we must consider the payment structure defined by Lease 1. If Lease 1 specifies that payments are to be made monthly, starting on December 1, then Ralph's gross income for this year would include the rent payment for December. Any payments made after December 31 would count toward his gross income for the following year.

For instance, if the monthly rent is $2,000, and the tenant made a payment on December 1, Ralph's gross income for the current year would increase by $2,000. Should the tenant continue to make timely payments, each subsequent month's rent would be added to the gross income for the corresponding year.

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