Marr Corp. reported rental revenue of $2,210,000 in its cash basis federal income tax return for the year ended November 30, 2006. Additional information is as follows:
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|
Rents receivable—November 30, 2006 |
$1,060,000 |
|
Rents receivable—November 30, 2005 |
800,000 |
|
Uncollectible rents written off during the fiscal year |
30,000 |
Under the accrual basis, Marr should report rental revenue of
- $1,920,000
- $1,980,000
- $2,440,000
- $2,500,000