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Question - Braydon rented a house to a tenant who had two large dogs and required the tenant to pay $1,500 rental security deposit and $2,000 pet security deposit. The tenant signed a 12-month lease. After five months, the tenant stopped paying his rent and suddenly moved out of the house without notifying Braydon. Braydon visited the house and found the tenant's dogs had caused damage to the house in the amount of $3,050. Due to the tenant's violation of the lease, Braydon did not return the rental deposit or the pet security deposit.
Required - How much of the security deposit must Braydon report as income?
a) $450
b) $3,050
c) $3,500
d) $0
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