Hoyt Rented Office Space Two Years Ago to Harris, Receiving

question 611

Multiple Choice

Hoyt rented office space two years ago to Harris, receiving the first and last months' rent plus a security deposit of $1,000. In early January of this year, Harris moves and Hoyt refunds $250 of the deposit and keeps the remainder to cover $500 which is spent for repairs to the office space and one week of unpaid rent that amounts to $250. How would this information be reflected on Hoyt's tax return this year?

• A) $750 income and $500 deduction
• B) $250 income and $500 deduction
• C) $750 income and no deduction
• D) No income is recognized, but a $250 deduction is allowed.

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Definitions:

Self-image

An individual's mental representation of themselves, which includes perceptions, thoughts, and feelings about their abilities and characteristics.

Conditioning

A technique of changing behavior whereby a person begins to link a behavior they desire with a stimulus that was once not related to it.

Collectivism

A social and cultural value that emphasizes the importance of groups and communities over individual achievement and interests.

Individualism

A perspective in social sciences that favors the autonomy of the individual over regulation by group norms or state laws.