Question: Question Content Area Office Palace, Inc., signed a contract to lease an all - in - one printer to a new customer, Ashley, on December

Question Content Area
Office Palace, Inc., signed a contract to lease an all-in-one printer to a new customer, Ashley, on December 27,2024. The contract called for rent of $600 per month for a period of 36 months beginning January 1,2025. Ashley was required to pay the first and last month's rent at the time the lease was signed. Ashley was also required to pay a $1,500 damage deposit. Office Palace must recognize as income for the lease:
a. $2,700 in 2024, if Office Palace is a cash or accrual basis taxpayer.
b. $0 in 2024, if Office Palace is an accrual basis taxpayer.
c. $7,800 in 2025, if Office Palace is a cash basis taxpayer.
d. $1,200 in 2024.

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