Business equipment to local organizations

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Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxable and (2) an accrual-method taxpayer.

$1,000 deposiyt from the Ladies' Club, which wants to lease a trailer. The club will receive the entire deposit back when the trailer is returned undamaged.

Income under cash method=

Income under accrual method =

Reference no: EM133306542

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