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natita [175]
3 years ago
7

On December 1, 2019, Ral received advance rental of $27,000 from a tenant for a three-year lease commencing January 1, 2020 to c

over rents for the years 2020, 2021, and 2022. In conformity with GAAP, Ral did not include any part of this rental in its income statement for the year ended December 31, 2019. What amount should Ral include in its 2019 taxable income for rent revenue?
Business
1 answer:
adelina 88 [10]3 years ago
8 0

Answer:

Nil

Explanation:

On receipt of the amount, the entries to be posted would be;

Debit cash account   $27,000

Credit deferred revenue  $27,000

Being entries to recognize cash received in advance for rental income.

As such, no rental income was earned in 2019. Amount to be included in Ral's taxable income for rent revenue is nil.

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I need help on creating my resume. I’m a high schooler currently in the 11th grade. I haven’t won any awards here at my high sch
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6 0
2 years ago
Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as
Rudiy27

Answer:

b.100 in 2002

Explanation:

This question can be solved without any calculations. When calculating consumer price index, the CPI for the year chosen as base is always 100. In this case, 2002 was chosen as the base year and, therefore, the CPI was 100 in 2002. Since that is one of the alternatives, no further steps are required and the answer is alternative b.

4 0
3 years ago
Enchante Inc., a designer clothing company buys $400 worth of silk from a silk trader, and $30 worth of accessories from Accesso
makvit [3.9K]

Answer:

d $630

Explanation:

Value added approach is a strategy for pricing a product which consider all the costs incurred and and all other factors which can effect the price of the product like how customer sees this product and how much he/she is willing to pay for this product etc.

Price of Designer dress = All cost incurred + Value added to the product

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3 0
3 years ago
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Which of the following statements is NOT true concerning the Other Dependent Credit
omeli [17]

Answer:

The incorrect statement is letter "B": Residents of Canada meet the definition as a qualifying person.

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Credit for Other Dependent is a tax credit taxpayers can claim for every qualifying dependent that is not considered as a Child Tax Credit (17 years or older and elderly parents). The taxpayer can get up to $500 nonrefundable credit for each of those qualifying dependents. Residents of Canada and Mexico do not meet the definition of qualifying dependent.

8 0
3 years ago
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