Franco Is Owner and Operator of a Cleaning Service Who

Multiple Choice

Franco is owner and operator of a cleaning service who uses the accrual method of accounting. He receives the following payments on December 31, 2014, the last business day of his tax year: How much of the $11,400 collected by Franco on December 31 must be included in his 2014 gross income?

A) $ 5,000
B) $ 6,400
C) $ 7,400
D) $ 9,000
E) $11,400