In July, Benedick leased a building to Beatrice for a period of 15 years at a monthly rental rate of $2,000 with no option to renew. At that time, the building had a remaining estimated useful life of twenty years. Prior to taking possession of the building, Beatrice made improvements at a cost of $18,000. These improvements had an estimated useful life of twenty years. The lease expired on June 30 of the current year at which point the improvements had a fair market value of $2,000. 

What is the amount that Benedick, the landlord, should include in his gross income for the current year ?

Answer rating: 100% (QA)

Solution Benedick the landlord should include the rental payments received from Beatrice as rental i... View the full answer