Paul Bristol, a cash-basis taxpayer, owns an apartment building. The following information was available for 2013:| | | | • | An analysis of the 2013 bank deposit slips showed recurring monthly rents received totaling $50,000. | | | • | On March 1, 2013, the tenant in apartment 2B paid Bristol $2,000 to cancel the lease expiring on December 31, 2014. | | | • | The lease of the tenant in apartment 3A expired on December 31, 2013, and the tenant left improvements valued at $1,000. The improvements were not in lieu of any rent required to have been paid. |
In computing net rental income for 2013, Bristol should report gross rents of
A. $53,000B. $52,000 C. $51,000 D. $50,000 |
