Question - 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