Office Palace,Inc

question 14

Multiple Choice

Office Palace,Inc.,leased an all-in-one printer to a new customer,Ashley,on December 27,2011.The printer was to rent for $600 per month for a period of 36 months beginning January 1,2012.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 2011, if Office Palace is an accrual basis taxpayer.
• B) $7,800 in 2012, if Office Palace is a cash basis taxpayer.
• C) $2,700 in 2011, if Office Palace is a cash basis taxpayer.
• D) $1,200 in 2011, if Office Palace is an accrual basis taxpayer.
• E) None of the above.

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Definitions:

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.

Marketing Practices

Encompasses the strategies and tactics businesses use to promote, sell, and distribute their products or services.

Promotional Campaigns

Coordinated marketing efforts designed to communicate offers to potential customers and persuade them to make a purchase or engage with a brand, product, or service.