In October of the current year, Jasmine received a $15,520 payment from a client for 32...

In October of the current year, Jasmine received a $15,520 payment from a client for 32 months of rent. The rental period begins on September 1 of this year. This amounts to $485 per month. Jasmine is a calendar-year taxpayer. What amount of the $15,520 payment, if any, must Jasmine recognize this year if she uses the accrual method of accounting?

Expert Solution

	CALCULTION OF MONTHLY RENT REVENUE
Working Notes:	Total Amount received	$ 15,520
	Divide By	"/" By
	No of Months Payment	$ 32
	Monthly Rent	$ 485


Solution:
	Calculation of Rent expenses recognize in the current year
	As per accrual basis of accounting

	Monthly Rent =	$ 485
	No. of Months Expired in calendar Year ( Sept To December)	4	Months

	Rent Recognized in this year =	Monthly Rent	"X"	No. of Months
	Rent Recognized in this year =	$ 485	"X"	4
	Rent Recognized in this year =	$ 1,940


	Answer = $ 1,940

ekkarill92 answered 2 years ago

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In October of the current year, Jasmine received a $15,520 payment from a client for 32...

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