Required information Problem 5-50 (LO 5-2) (Algo) [The following information applies to the questions displayed below.] Ralph owns a building 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 $510 per month, payable on the first of the next month, and the tenant must make a $510 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $5,610 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $510 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,020 that is to be applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.) Problem 5-50 Part-a (Algo) 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 under that lease? Amount included in Gross Income Required information Problem 5-50 (LO 5-2) (Algo) [The following information applies to the questions displayed below.] Ralph owns a building 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 $510 per month, payable on the first of the next month, and the tenant must make a $510 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $5,610 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $510 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,020 that is to be applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.) Problem 5-50 Part-b (Algo) 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? Amount included in Gross Income Required information Problem 5-50 (LO 5-2) (Algo) [The following information applies to the questions displayed below.] Ralph owns a building 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 $510 per month, payable on the first of the next month, and the tenant must make a $510 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $5,610 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $510 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,020 that is to be applied toward the rent for the last two months of the lease. (Leave no answers blank. Enter zero if applicable.) Problem 5-50 Part-c (Algo) 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? Amount included in Gross Income