Taylor Corporation, an Accrual-Basis Calendar-Year Corporation, Rented an Office Building

Multiple Choice

Taylor Corporation, an accrual-basis calendar-year corporation, rented an office building to Austin for $3,000 per month. On December 28, 2016, Taylor received a deposit of $4,000 in addition to the first and last months' rent. Occupancy began on January 1, 2017. On August 15, 2017 Austin closed the business. In 2017, Taylor had collected rent for February, March, April and May, but collected no payments thereafter. Taylor withheld $1,100 from the deposit because of damage to the property and $1,500 for unpaid rent. Taylor refunded the balance of the deposit to Austin. What amount should Taylor report as gross income for 2017?

A) $13,500
B) $14,600
C) $19,500
D) $20,600