Edan owns Maple Haven Apartments. During the year, Franklin, a tenant, moved to another state. Franklin paid Edan $1,600 to cancel the two-year lease he had signed. Edan subsequently rented the unit to Will. Will paid the first and last months' rents of $1,200 each and a security deposit of $1,100. Edan also owns a building that is used as a health club. The club has signed a fifteen-year lease at an annual rental of $20,000. The owner of the club requested that Edan install a swimming pool on the property. Edan declined to do so. The owner of the club finally constructed the pool himself at a cost of $17,000. Requirement What amount must Edan include in gross income? In addition to the regular rental income from the apartment and health club Edan must include the following in gross income. (If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) Source of income Income Total gross income Edan owns Maple Haven Apartments. During the year, Franklin, a tenant, moved to another state. Franklin paid Edan $1,600 to cancel the two-year lease he had signed. Edan subsequently rented the unit to Will. Will paid the first and last months' rents of $1,200 each and a security deposit of $1,100. Edan also owns a building that is used as a health club. The club has signed a fifteen-year lease at an annual rental of $20,000. The owner of the club requested that Edan install a swimming pool on the property. Edan declined to do so. The owner of the club finally constructed the pool himself at a cost of $17,000. Requirement What amount must Edan include in gross income? In addition to the regular rental income from the apartment and health club Edan must include the following in gross income. (If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) Source of income Income Fair market value of the pool First month's rent Last month's rent Lease cancellation payment Security deposit Choose from any list or enter any number in the input fields and then continue to the next
