McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 20

Dustin has a contract to provide services to Dado Enterprises.In November of year 0, Dustin billed Dado $10,000 for the services he rendered during the year.Dado is an accrual-method proprietorship that is owned and operated by Dustin's father.
a.What amount of revenue must Dustin recognize in year 0 if Dustin uses the cash method and Dado remits payment for the services in December of year 0 What amount can Dado deduct in year 0
b.What amount of revenue must Dustin recognize in year 0 if Dustin uses the accrual method and Dado remits payment for the services in December of year 0 What amount can Dado deduct in year 0
c.What amount of revenue must Dustin recognize in year 0 if Dustin uses the cash method and Dado remits payment for the services in January of year 1 What amount can Dado deduct in year 0
d.What amount of revenue must Dustin recognize in year 0 if Dustin uses the accrual method and Dado remits payment for the services in January of year 1 What amount can Dado deduct in year 0