Lease to rent office space, Accounting Basics

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Lease to rent office space

On January 1, 2013, Pavlina signed a four year lease to rent office space from Michael. The lease commenced immediately on January 1, 2013. During 2013, Pavlina will pay Michael, $24,000 for the first year's rent, $2,000 for the last month's rent, and $2,000 as a security deposit. Pavlina and Michael agree that the security deposit will be returned by Michael at the end of the lease. How much gross income should Michael report for 2013 as a result of these items?

a. $30,000

b. $28,000

c. $26,000

d. $24,000

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Accounting Basics: Lease to rent office space

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Accounting Basics: Lease to rent office space

Reference No:- TGS042334

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Cash-basis taxpayer problem

Q : Equivalent annual cost of one machines

Q : What is amount of cash that should be received by seller

Q : Why does a profit-maximizing firm hire workers up to point

Q : Lease to rent office space

Q : What journal entry(ies) would be recorded

Q : What is amount of net sales from given transactions

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Lease to rent office space

Reference No:- TGS042334

Recent Questions Asked Accounting Basics

Q : Cash-basis taxpayer problem

Q : Equivalent annual cost of one machines

Q : What is amount of cash that should be received by seller

Q : Why does a profit-maximizing firm hire workers up to point

Q : Lease to rent office space

Q : What journal entry(ies) would be recorded

Q : What is amount of net sales from given transactions

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Q : What is the cost of the merchandise if paid on september

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