Ask Question
4 October, 17:31

Mary beth owns a rental house. her current tenant, carl, signed a two-year lease and moved into the house in january of last year. at that time, carl paid mary beth $1,600 for the first month's rent, $1,600 for the last month's rent, and $1,600 as a security deposit. carl paid the $1,600 monthly rent in cash on the first of each month during the year, except in november when he replaced the water heater in exchange for his rent. the water heater would have cost mary beth $1,100 to purchase and install. how much rental income must mary beth report for last year?

+2
Answers (1)
  1. 4 October, 20:16
    0
    Security deposit = $1,600

    Rent for 11 months $1,600*11 = $17,600

    In November instead of paying rent to Mary Beth, Carl replaced the water heater. This water heater would have costed Mary Beth $1,100 to purchase and install, but as this was done by Carl, Carl did not pay rent ($1,600). So, for the month of November Mary Beth’s income is $1,100.

    Rental income for the last year that is to be reported can be calculated as below: -

    ($1,600*11) + $1,100+$1,600 = $20,300

    Answer: $20,300 to be reported as rental income of the last year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Mary beth owns a rental house. her current tenant, carl, signed a two-year lease and moved into the house in january of last year. at that ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers