Question
Diego, a cash basis taxpayer, leased property on June 1, 2021, to Carlos at $325 per month. Carlos paid Diego $325 as a security
Diego, a cash basis taxpayer, leased property on June 1, 2021, to Carlos at $325 per month. Carlos paid Diego $325 as a security deposit which may be applied as the last month's rent of the lease. Also, during 2021, Carlos paid $650 in advance rent for the months of January and February 2022. What amount of rental income must be included in Diego's return for 2021?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
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