Polly Is a Cash Basis Taxpayer with the Following Transactions

Essay

Polly is a cash basis taxpayer with the following transactions during the year: $\begin{array}{llcc} \text {Cash received from sales of products } &\$90,000\\ \text { Cash paid for expenses (except rent and interest) } &\$30,000\\ \text {Rent paid on a leased building for 24 months beginning December 1 } &\$54,000\\ \text { Prepaid interest on abank loan, paid on December 1 , for the next 3 months } &\$6,000\\ \text { Four months' rent received on a leased building, on October 1} &\$8,000\\\end{array}$
Calculate Polly's income from her business for this calendar year. $\begin{array}{llcc} \text { Salesincome } &\$\underline{\quad\quad}\\ \text { Rental income} &\underline{\quad\quad}\\ \text { Total income } &&\$\underline{\quad\quad}\\ \text { Expenses other than rent and interest } &\underline{\quad\quad}\\ \text {Rent } &\underline{\quad\quad}\\ \text { Interest } &\underline{\quad\quad}\\ \text { Total expenses} &&\underline{\quad\quad}\\ \text { Net income } &&\$\underline{\quad\quad}\end{array}$