Lake Corp., an accrual basis calendar-year corporation, had the following 2015 receipts. Advanced Rental payments where the lease ends in 2017 : $125,000 Lease cancellation payment from a five-year lease tenant $50, 000 Lake had no restrictions on the use of the advanced rental payments and renders no services. What amount of income should Lake report on its 2015 tax return?

Lake Corp., an accrual basis calendar-year corporation, had the following 2015 receipts. Advanced Rental payments where the lease ends in 2017 : $125,000 Lease cancellation payment from a five-year lease tenant $50, 000 Lake had no restrictions on the use of the advanced rental payments and renders no services. What amount of income should Lake report on its 2015 tax return?

Lake Corp., an accrual basis calendar-year corporation, had the following 2015 receipts.
Advanced Rental payments where the lease ends in 2017 : $125,000
Lease cancellation payment from a five-year lease tenant $50, 000
Lake had no restrictions on the use of the advanced rental payments and renders no services. What amount of income should Lake report on its 2015 tax return?





a. $0
b. $50,000
c. $125,000
d. $175,000





Answer: D