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:

Performance Based-Reward Systems

Compensation systems that tie rewards directly to individual, team, or organizational performance outcomes.

Measurement System

Refers to a set of instruments, standards, and procedures used to quantify physical quantities, properties, or phenomena.

Performance Based-Reward Systems

Reward mechanisms that tie compensation or recognition to the achievement of specific performance criteria, intended to motivate and incentivize high levels of performance.

Flexible Benefit Plans

Employee benefit programs that allow individuals to choose from a range of benefit options that best suit their personal or family needs.