Office Palace,Inc

question 24

Multiple Choice

Office Palace,Inc.,leased an all-in-one printer to a new customer,Ashley,on December 27,2013.The printer was to rent for $600 per month for a period of 36 months beginning January 1,2014.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)$0 in 2013,if Office Palace is an accrual basis taxpayer.
• B)$7,800 in 2014,if Office Palace is a cash basis taxpayer.
• C)$2,700 in 2013,if Office Palace is a cash basis taxpayer.
• D)$1,200 in 2013,if Office Palace is an accrual basis taxpayer.
• E)None of the above.

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Definitions:

Debris Avalanche

A rapid and flowing type of mass wasting that involves the sudden downward and outward movement of soil, rock, and organic matter.

Debris Flow

A type of fast-moving landslide consisting of a mixture of water, soil, rock, and organic matter, flowing down slopes and channels.

Rock Slide

A rock slide is a type of landslide involving the movement of rock, soil, and debris down a slope, often triggered by factors like water saturation, erosion, or seismic activity.

Preexisting Joints

Natural fractures or separations in rock that were present before any other types of deformation.