Rocky owns The Palms Apartments.During the year,Molly Ann,a tenant,moved to another state.Molly Ann paid Rocky $1,500 to cancel the two-year lease she had signed.Rocky then rented the apartment to Elvis

Rocky owns The Palms Apartments.During the year,Molly Ann,a tenant,moved to another state.Molly Ann paid Rocky $1,500 to cancel the two-year lease she had signed.Rocky then rented the apartment to Elvis who paid the first and last months’ rents of $500 each and a security deposit of $800.Rocky also owns a building used as a dance club.The owner of the club requested that Rocky add on another room to be used for private parties.Rocky refused but allowed the club owner to make the addition at a cost of $20,000.What amount should be included in Rocky’s income with regard to these items?


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