Ralph owns a building that he is trying to lease. Ralph is acalendar-year, cash-method taxpayer and is trying to evaluate thetax consequences of three different lease arrangements. Under lease1, the building rents for $680 per month, payable on the first ofthe next month, and the tenant must make a $680 security depositthat is refunded at the end of the lease. Under lease 2, thebuilding rents for $7,480 per year, payable at the time the leaseis signed, but no security deposit is required. Under lease 3, thebuilding rents for $680 per month, payable at the beginning of eachmonth, and the tenant must pay a security deposit of $1,360 that isto be applied toward the rent for the last two months of the lease.(Leave no answers blank. Enter zero ifapplicable.)

a. What amounts are included in Ralph’s gross income thisyear if a tenant signs lease 1 on December 1 and makes timelypayments under that lease?
Amount included in Gross Income:

b. What amounts are included in Ralph’s grossincome this year if the tenant signs lease 2 on December 31 andmakes timely payments under that lease?
Amount included in Gross Income:

c. What amounts are included in Ralph’s grossincome this year if the tenant signs lease 3 on November 30 andmakes timely payments under that lease?
Amount included in Gross Income: