Question
Jackson was founded on August 15, Year 1. Jackson rented an office for two years and moved in on August 15, Year 1. The first
Jackson was founded on August 15, Year 1. Jackson rented an office for two years and moved in on August 15, Year 1. The first rent payment was required on August 15, Year 1, and covered the first three months' rent. The monthly rental rate was $5,000. The second payment will be due November 15, Year 1. All payments occurred as scheduled. The untrained bookkeepers debited [increased] Rent Expense each time a cash payment was made for rent. The lease was not renewed in Year 3. You have discovered any mistakes that may have been made in determining Jacksons income for the period ended December 31, Year 1. #23. Should Jacksons income be increased or decreased for the period ending December 31, Year 1, when correcting any mistakes that may have occurred related to Office Rent as stated above? Enter 2 to indicate 'increased' income OR enter 1 to indicate 'decreased' income. Enter '0' to indicate Jackson's income should not be adjusted as a result of correcting any mistakes that may have occurred. [This question is not asking for the dollar amount of the correction.]
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