LO 7.1 3. Geraldine is an accrual basis taxpayer who has the following transactions during the current calendar tax year:

Accrued business income (except rent) $220,000 Accrued business expenses (except rent) 170,000 Rental income on a building lease for the next 6 months, received on December 1 21,000 Prepaid rent expense for 6 months, paid on December 1 12,000 Calculate Geraldine’s net income from her business for the current year.

Income:

Other than rental $ ____________ Rental $ ____________ Expenses:

Other than rental $ ____________ Rental $ ____________ Net income $ ____________