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Question - Sheila has a second home used as a rental property. Her tenant moved out near the end of last year. She has been renting the home for $1,750 per month for the last few years. Sheila's friend, Barry, needed a place to live as he was recently divorced. Sheila agreed to let Barry live there for the next 12 months if he paid enough to cover the mortgage. The mortgage is $1,000 per month. Barry lived in the house and paid, as agreed, for the entire year. How would Sheila report her rental income and expenses?
Obtain a copy of Accounting and Auditing Enforcement Release (AAER) No. 3146, issued by the SEC on June 24, 2010.
Internal Control Environment
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