Question 1:Cal Poly Pomona, Inc., ("CPP") owns a residential apartment complex consisting of 20 apartments. During the current tax year, CPP received the following amounts in connection with the rental.

• $220,000 cash from rents, of which $35,000 represents late payments of from two year ago rents and $30,000 for prepayments of next year's rent;
• $10,000 of damage deposits on new rental leases (20% is nonrefundable, the remainder is refundable if no damage exists at the end of the lease and is put in a separate escrow account);
• $5,000 forfeited deposits on leases expiring in the current year that was held in a separate escrow account (CPP expects to spend this amount in the near future on deductible repair expenses.);
• $5,000 value of a collectible painting to CPP by a tenant in lieu of two months' rent; and
• $5,500 value of improvements to an apartment left by a tenant at the end of the lease (as a condition for constructing the improvements, CPP agreed to reduce the rent $500 for each of the six months remaining on the lease).

How much must CPP report as gross rental income on its current year tax return assuming that CPP uses (a) the cash basis and (b) the accrual basis?