Tyler Has Rented a House from Camarah Since Last Year

question 152

Multiple Choice

Tyler has rented a house from Camarah since last year. The rent is usually $1,200 per month, but Camarah reduced the monthly rent down to $200 for all twelve months this year in exchange for Tyler putting in an inground pool in the backyard. The improvement has a fair market value of $20,000. How much total rental income must Camarah report this year?

• A) $12,000
• B) $14,400
• C) $2,400
• D) $22,400

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Definitions:

Annual Growth

The yearly percentage increase in the size or value of an economic variable, such as gross domestic product or a company's revenue.

Redemption Value

The amount due to an investor once a bond or other debt instrument reaches its maturity date.

CSB

Canadian Savings Bonds, a secure savings product issued and guaranteed by the Government of Canada.

Compound-Interest

A method of calculating interest where the amount is based on the initial principal and the interest that has been accumulated in past periods.