Office Palace, Inc

question 49

Multiple Choice

Office Palace, Inc., leased an all-in-one printer to a new customer, Ashley, on December 27, 2018. The printer was to rent for $600 per month for a period of 36 months beginning January 1, 2019. 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 2018, if Office Palace is an accrual basis taxpayer.
• B) $7,800 in 2019, if Office Palace is a cash basis taxpayer.
• C) $2,700 in 2018, if Office Palace is a cash or accrual basis taxpayer.
• D) $1,200 in 2018, if Office Palace is a cash or accrual basis taxpayer.
• E) None of these.

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Definitions:

Nonpolarized Capacitors

Capacitors that can be connected to either polarity of voltage. Generally used in alternating current circuits.

AC

Alternating Current, a type of electrical current where the current's direction and amplitude vary cyclically.

DC

DC stands for direct current, which is an electrical current that flows in one direction only, used in batteries, electronics, and some power supplies.

Capacitance Unit

The unit of measurement for capacitance, the farad (F), indicating the ability of a system to store an electric charge.