GH&F Is a Calendar Year, Accrual Basis Taxpayer

question 70

Multiple Choice

GH&F is a calendar year, accrual basis taxpayer. In October 2016, GH&F received a $18,000 cash payment from a tenant who leases space in a commercial office building that GH&F owns. The payment was rent for the 18-month period beginning on November 1, 2016. As a result of the payment, GH&F should report:

• A) $2,000 book income and taxable income
• B) $2,000 book income and $18,000 taxable income
• C) $18,000 book income and taxable income
• D) None of the above