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 2016. Dana€™s business income for 2016 is $30,000 computed on the accrual method. Her books show the following:

a. What adjustment is necessary to Dana€™s income?
b. How should Dana report the adjustment?

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Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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Question Posted: Dec 11, 2015 02:26 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, 2015 December 31, 2016 Accounts receivable S16,000 Accounts payable 15,200 11,800

Step by Step Answer:

a The amount of the adjustment is 800 16000 15200 The receivables have not b...View the full answer

Federal Taxation 2016 Comprehensive

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