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Problem $5-50($LO $5-2)($Static$)$

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Ralph owns a building that he is trying to lease. Ralph is a calendar$-$year, cash$-$method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease $1,$ the building rents for $$500$ per month, payable on the first of the next month, and the tenant must make a $$500$ security deposit that is refunded at the end of the lease. Under lease $2,$ the building rents for $$5,500$ per year, payable at the time the lease is signed, but no security deposit is required. Under lease $3,$ the building rents for $$500$ per month, payable at the beginning of each month, and the tenant must pay a security deposit of $$1,000$ that is to be applied toward the rent for the last two months of the lease.

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Problem $5-50$ Part c $($Static$)$

c$.$ What amounts are included in Ralph's gross income this year if the tenant signs lease $3$ on November $30$ and makes timely payments under that lease?