Ralph owns a building that he io trying to lease. Ralph is a calendar-ycar, cash-method taxpayer arid is trying to evaluate the tax corkequences of three different lease arrangements. Under lease 1 , the bulding ferits for $500 per month, payable on the first of the nekt month. and the tenant must make a $500 secunity deposit that is refunded at the end of the lease. Under fease 2 . the building rents for $5,500 per year. payable at the time the lease is signed, but no security deposit is required. Under lease 3 , the building rents for $500 per morth. payable at the beginning of each month, and the tenant must pay a security deposit of $1,000 that is to be applied toward the rent for the last two months of the lease Note: Leave no answers blank. Enter aero if applleable. Required: a. What amounts are included in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely paymients under that lease? b. What amounts are included in Ralph's gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? c. What amounts are included in Ralphis gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease? Complete this question by entering your answers in the tabs below. What amounts are included in Falph's gross income this year if a tenant signs lease 1 on December 1 and makes timely pryyments under that lease? Ralph owns a bulding that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1 , the building rents for $500 per month, payable on the first of the next month, and the tenant must make a $500 security deposit that is refunded at the end of the lease. Under lease 2 , the building rents for $5.500 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3 , the building rents for $500 per month. payable at the beginning of each month, and the tenant must pay a security deposit of $1,000 that is to be applied toward the rent for the last two month of the lease. Note: Leave no answers blonk. Enter rero If opplicable. Requlred: a. What amounts are induded in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely payments: under that lease? b. What amounts are included in Ralph's gross income this year if the tenant signs lease 2 on December 31 and makes vimely payments under that lease? c. What amounts are included in Ralph's gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease? Complete this question by entering your answers in the tabs below. What amounts are included in Ralph's gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? Raiph owns a building that he is trying to lease. Ralph is a calendaryear cash-fnethod taxpayer and is trying to evaluate the tax. consequences of three different lease arrangements. Under lease 1 , the buildirig rents for $500 per morith. payable on the first of the next month, and the tenant must make a 5500 security deposit that is refunded at the end of the lease. Under lease 2 . the building rents for $5,500 per year, payable at the time the lease is sigried, but fo security deposit is required. Under kease 3 , the building rerits for $500 per morth, payable at the beginning of each month, and the tenant must pary a security deposit of $1,000 that is to be applied toward the rent for the last two months of the lease. Note: Leave no answers blank. Enter xero if applicable. Aequired: a. What amounts are included in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely payments arider that lease? b. What amounts are included in Ralphts gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? c. What amounts are included in Ralph's gross income this year if the tenant signs lease 3 on November 30 and makes timely Payments under that kease? Complete this question by entering your arswars in the tabs below. What amounts are included in Palph's gross income this year if the tenant signs lnase 3 on Flovember 30 and makes timely payments under that lease
