Chat with AI
McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
Edition 3ISBN: 978-0077328368McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
Edition 3ISBN: 978-0077328368 Exercise 25
Nancy operates a business that uses the accrual method of accounting.In December, Nancy asked her brother, Hank, to provide her business with consulting advice.Hank billed Nancy for $5,000 of consulting services in year 0 (a reasonable amount), but Nancy was only able to pay $3,000 of the bill by the end of year 0.However, Nancy paid the remainder of the bill in year 1.
a.How much of the $5,000 consulting services will Hank include in his income in year 0 if he uses the cash method of accounting What amount can Nancy deduct in year 0 for the consulting services
b.How much of the $5,000 consulting services will Hank include in his income in year 0 if he uses the accrual method of accounting What amount can Nancy deduct in year 0 for the consulting services
a.How much of the $5,000 consulting services will Hank include in his income in year 0 if he uses the cash method of accounting What amount can Nancy deduct in year 0 for the consulting services
b.How much of the $5,000 consulting services will Hank include in his income in year 0 if he uses the accrual method of accounting What amount can Nancy deduct in year 0 for the consulting services
Explanation
Verified
Verified
a)H's income in year 0 under cash method...
McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
