What amount of gross income should pierce report

Reference no: EM13135510

Pierce Corp., an accrual-basis, calendar-year C Corporation, had the following 2009 receipts:

2010 advance rental payments for a lease ending in 2011: $250,000
Lease cancellation payment from a 5-year lease tenant: $100,000

Pierce had no restrictions on the use of the advance rental payments and renders no services connection with the rental income. What amount of gross income should Pierce report on its 2009 tax return?

a. $350,000
b. $250,000
c. $100,000
d. $0

Reference no: EM13135510

Questions Cloud

Wal-mart and net income : What does it mean if a company such as Wal-Mart has net income, increasing total assets, and a lower return on assets? Is this a good thing or a bad thing?

Perform the chisquare test for a uniform distribution : Perform the chisquare test for a uniform distribution. At α = .05, does this sample contradict the assumption that sales are the same for each beverage?

Major trends in terrorism : What are the major trends in terrorism in recent years?

The issues that led to the implementation of the program : 1. What were the issues that led to the implementation of the program? 2. Describe the program?

What amount of gross income should pierce report : Pierce had no restrictions on the use of the advance rental payments and renders no services connection with the rental income. What amount of gross income should Pierce report on its 2009 tax return?

Determining intelligence system : What are some strengths and weaknesses of the intelligence system for dealing with terrorism?

Process to increase company net income : Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? and what is the process?

Prepare chester inc journal entry to record : Prepare Chester, Inc.'s journal entry (or entries) to record its acquisition of Festus Corp. assuming that the separate incorporation of Festus is maintained.

Exchange rates and hourly compensation : Discuss the future of the exchange rates for each of these countries, China, Mexico and India, and whether they are expected to appreciate or depreciate with respect to the US dollar.

User Account

All Pages