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Kate is an accrual basis, calendar-year taxpayer. On November 1, current tax year, Kate leased out a building for $4,000 a month. On that day
Kate is an accrual basis, calendar-year taxpayer. On November 1, current tax year, Kate leased out a building for $4,000 a month. On that day Kate received six months rental income on the building, a total of $24,000 ($4,000 x 6 months). How much income must Kate include on her current tax return as a result of this transaction?
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