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Home Office, Inc., an accrual basis taxpayer, leases a copying machine to a new customer on December 27, 2019. The machine was to rent for
Home Office, Inc., an accrual basis taxpayer, leases a copying machine to a new customer on December 27, 2019. The machine was to rent for $300 per month for a period of 36 months beginning January 1, 2020. The customer was required to prepay 2 months rent at the time the lease was signed on December 27,2019. The customer was also required to pay a $2,000 damage deposit at the time the lease was signed. Determine the amount of gross income Home Office recognizes in 2019.
- $0
- $300
- $600
- $2,600
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