Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in

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Dana manages real estate and is a cash method taxpayer.

She changes to the accrual method in 2024. Dana’s business income for 2024 is $$30,000$ computed on the accrual method. Her books show the following:

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a. What adjustment is necessary to Dana’s income?

b. How should Dana report the adjustment?

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Pearsons Federal Taxation 2024 Individuals

ISBN: 9780138238100

37th Edition

Authors: Mitchell Franklin, Luke E. Richardson

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Question Posted: Apr 08, 2024 02:01 AM

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Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in

Question:

December 31, 2023 Accounts receivable Accounts payable $16,000 15,200 December 31, 2024 $25,300 11,800

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Pearsons Federal Taxation 2024 Individuals

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