For 2018, Essence Company, a calendar year taxpayer, will change from using the cash method for tax
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For 2018, Essence Company, a calendar year taxpayer, will change from using the cash method for tax purposes to the accrual method. At the end of 2017, Essence had the following items:
Accounts receivable ..............................$200,000
Accounts payable ...................................135,000
Bank loan ................................................100,000
What is the § 481(a) adjustment for this change in accounting method? Be sure to state whether it is positive or negative.
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Related Book For
South-Western Federal Taxation 2019 Comprehensive
ISBN: 9781337703017
42th Edition
Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young
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