Brad and kate received $9,500 for rent from mike and janet, who are renting their home in santa ana, california. brad and kate did not use this property for personal use. the rent covers eight months from august 1 of the current year to march 31 of the following year. the amount also includes a security deposit of $1,500. how much should brad and kate report as rental income in the current tax year?
a. $1,500
b. $5,000
c. $8,000
d. $9,500

c. $8,000

Explanation:

The security deposit is usually refundable and NOT part of the rental income and, therefore, it should be deducted from the total amount received when reporting rental income for the tax year.

Thus, Brad and Kate should report $8,000 as rental income in the current tax year.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

the first one $24,630