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  3. 15. in 2005, landlord leased a building to tenant

15. In 2005, Landlord leased a building to Tenant for a period of 15 years...

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15. In 2005, Landlord leased a building to Tenant for a period of 15 years at a monthly rental of $1,000 (beginning on July 1, 2005) with no option to renew. At that time, the building had a remaining estimated useful life of 20 years. Prior to taking possession of the building on July 1, 2005, Tenant made improvements at a cost of $18,000. The improvements had an estimated useful life of 20 years at the commencement of the lease period. The lease expired on June 30, 2020, at which point the improvements had a fair market value of $2,000. What total amount should Landlord include in his/her gross income for 2020? Assume that all rental payments were made on the first day of each month for all months. A $ 5,000 8,000 12,000 D 24,000 E None of the above B

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