1.Joy, a landlord, demands a deposit equal to two month's rent before she will rent an apartment to prospective tenant Joey. Under the lease agreement, the deposit will be returned to Joey at the end of the lease term so long as he has not damaged the property or defaulted on any lease payments. Joy pays no interest to Joey with respect to the deposit, but she puts it in a bank account that earns interest and includes the interest in her own Gross Income each year. Joey pays the required deposit and rents an apartment for three years. What are the tax consequences for Joy if she:

a.repays the deposit in full to Joey at the end of Year 3 when he leaves the apartment in good condition and without being arrears in rent payments? (Rule: 61)?