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At the end of the year, a landlord collected $750,000 of rent in advance for the next year. For tax purposes, rent is taxable when
At the end of the year, a landlord collected $750,000 of rent in advance for the next year. For tax purposes, rent is taxable when collected. Assuming the landlord's tax rate is 40%, the tax base of the unearned rent is
A) $750,000.
B) $300,000.
C) $0.
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