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
Tax
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