X Assignment Print View x + ezto.mheducation.com/ext/map/index.html?_c... [ * U > Other bookmarks Re Apps Tin Louisiana State Uni. Cengage login BLAW Other bookmarks Reading list 6 Homework As... Saved Help Save & Exit Submit Problem 5-50 (LO 5-2) (Algo) Check my work [The following information applies to the questions displayed below.] Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and and is trying to evaluate the tax consequences is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1, the of three different lease arrangements. Under building rents for $700 per month, payable on the first of the next month, and the tenant must make lease 1, the building rents for $700 per month, a $700 security deposit that is refunded at the end of the lease. Under lease 2, the building rents payable on the first of the next month, and the for $7,700 per year, payable at the time the lease is signed, but no security deposit is required. tenant must make a $700 security deposit that Under lease 3, the building rents for $700 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,400 that is to be applied toward the rent for the last two is refunded at the end of the lease. Under lease months of the lease. (Leave no answers blank. Enter zero if applicable.) 2, the building rents for $7,700 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building References rents for $700 per month, payable at the beginning of each month, and the tenant must Section Break Problem 5-50 (LO 5- pay a security deposit of $1,400 that is to be 2) (Algo ) applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.) Award: 0.37 points Problem 5-50 Part-b (Algo) Problem 5-50 Part-a (Algo) b. What amounts are included in Ralph's gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? a. What amounts are included in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease? Amount included in Gross Income Amount included in Gross Income be here to search O 39OF Clear