Carmen opens a retail store. Her sales during the first year are $600,000, of which $30,000 has
Question:
a. Compute her net income from the business assuming she elects the accrual method.
b. Compute her net income from the business assuming she elects the cash method.
c. Would paying the $15,000 she owes for operating expenses before year-end change her net income under accrual method of reporting? under the cash method?
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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