Mary, a cash basis individual, is awarded a $10,000 bonus on December 1, 20X1. The money is set aside for her in a special account that she can immediately draw upon at any time up until January 31, 20X2. Mary decides to wait two months and pull money out of the account on January 31, 20X2. How much income does Mary have in 20X1?

Answer rating: 100% (QA)

Since Mary is on a cash basis the income is recognized ... View the full answer