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:

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with other countries.

Net Capital Outflows

The value of domestic assets purchased by foreigners minus the value of foreign assets purchased by residents of a country.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Imports

Goods and services that are produced abroad and sold domestically