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

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Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it recelved the following cash payments. To what extent does each payment represent current taxable income to Besito? Required: a. \$780 repayment of a loan from an employee. Besito loaned $750 to the employee six months ago, and the employee repaid the loan with interest. b. $850 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $10,500 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. d. $1,184 prepaid rent from the customer described in part (b). The rent is $16 per day for the 74-day period from December 17 through February 28 For all requirements, leave no cells blank - be certain to enter " O " wherever required. Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it recelved the following cash payments. To what extent does each payment represent current taxable income to Besito? Required: a. \$780 repayment of a loan from an employee. Besito loaned $750 to the employee six months ago, and the employee repaid the loan with interest. b. $850 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $10,500 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. d. $1,184 prepaid rent from the customer described in part (b). The rent is $16 per day for the 74-day period from December 17 through February 28 For all requirements, leave no cells blank - be certain to enter " O " wherever required

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