Paul Bunyon, Inc.., an accrual basis taxpayer, leased a wood shredding machine to a new customer on
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Question:
Paul Bunyon, Inc.., an accrual basis taxpayer, leased a wood shredding machine to a new customer on December 27, 2012. The machine was to rent for $400 per month for a period of 12 months beginning January 1, 2013. The customer was required to pay the first and last month's rent at the time the lease was signed. The customer also was required to pay a $400 damage deposit. Paul Bunyon must recognize as income from the lease in 2012:
a. $0.
b. $400.
c. $800.
d. $1,200.
e. None of the above.
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st edition
Authors: David M. Maloney, William H. Hoffman, Jr. , William A. Raabe, James C. Young
Posted Date: