Office Palace,Inc

question 94

Multiple Choice

Office Palace,Inc. ,leased an all-in-one printer to a new customer,Ashley,on December 27,2016.The printer was to rent for $600 per month for a period of 36 months beginning January 1,2017.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 2016,if Office Palace is an accrual basis taxpayer.
• B)$7,800 in 2017,if Office Palace is a cash basis taxpayer.
• C)$2,700 in 2016,if Office Palace is a cash basis taxpayer.
• D)$1,200 in 2016,if Office Palace is an accrual basis taxpayer.
• E)None of these.

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Definitions:

Backstage View

A feature in Microsoft Office applications that provides access to file management tasks, such as saving, opening, printing, and sharing.

Print Tab

A feature in software applications that provides options for configuring and executing the printing of documents.

Notes Pane

A section in presentation and document software where users can add supplementary notes to slides or pages, often not visible to the final audience.

Text Box

A graphical container in software applications that allows users to input or display text.