Rocky Owns the Palms Apartments

question 1592

Essay

Rocky owns The Palms Apartments. During the year, Molly Ann, a tenant, moved to another state. Molly Ann paid Rocky $1,500 to cancel the two- year lease she had signed. Rocky then rented the apartment to Elvis who paid the first and last months' rents of $500 each and a security deposit of $800. Rocky also owns a building used as a dance club. The owner of the club requested that Rocky add on another room to be used for private parties. Rocky refused but allowed the club owner to make the addition at a cost of $20,000. What amount should be included in Rocky's income with regard to these items?

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Definitions:

Fast-Acting

A term describing something that takes effect or produces results quickly.

A-Delta Fibres

Fast-conducting nerve fibers that transmit sharp, acute pain sensations to the brain.

Trichromatic Theory

A theory of color vision proposing that the human eye has three types of receptors with different sensitivities to light wavelengths, responsible for the perception of color.

Afterimage Phenomenon

A visual illusion where an image continues to appear briefly even after exposure to the actual image has ceased.