In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2021 amounted to $410,000 at December 31, 2021. DFS

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Q: In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax…

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