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Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does

Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Besito?

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  1. $624 repayment of a loan from an employee. Besito loaned $600 to the employee six months ago, and the employee repaid the loan with interest.
  2. $700 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment.
  3. $10,200 short-term loan from a local bank. Besito gave the bank a written note to repay the loan in one year at 5 percent interest.
  4. $962 prepaid rent from the customer described in part (b). The rent is $13 per day for the 74-day period from December 17 through

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