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March Corp. reported rental revenue of $2,210,000 in its cash basis federal income tax return for the year ended November 30, Year 2. Additional information is as follows:
| Rents receivable - November 30, Year 2 | $ 1,060,000 |
| Rents receivable - November 30, Year | 1800,000 |
| Uncollectible rents written off during the fiscal year | 30,000 |
Under the accrual basis, March should report rental revenue of:
a.$2,440,000
b.$1,980,000
c.$1,920,000
d.$2,500,000
Answer：D
Choice "D" is correct. $2,500,000 rental revenue under the accrual basis.
| Rents receivable at begin 11/30/Year 1 | $ 800,000 |
| Add: Billings accrued | 2,500,000 |
| Sub Total | 3,300,000 |
| Less: Cash collections | (2,210,000) |
| Write-offs | (30,000) |
| Rents receivable at end 11/30/Year 2 | $ 1,060,000 |
