Question: 6 On May 1 , 2 0 x 1 , Maggie Mays ( cash basis ) leases property she owns to Tommy Thompson for rent

6 On May 1,20x1, Maggie Mays (cash basis) leases property she owns to Tommy Thompson for rent of $1,000 per month. Tommy pays Maggie $2,000 as a damage deposit which will be returned at the end of the lease term. In addition, Tommy pays Maggie $6,000 as advance rent which is to be applied to rent for the last six months of the lease term. The lease runs for a one year period beginning on May 1,20x1. What is Maggie's rental gross income for 20x1? Assume that Tommy also makes six other $1,000 rental payments to Maggie during 20x1,
$12,000 B 8,000 c 14,000
6,000
None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!