Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2017. Gross receipts were $300,000. The following expenses were incurred and paid as indicated:
Expense __________________________________________________ Payment Date
Rental of coliseum ......................... $ 25,000 ..................... December 21, 2017
Cost of goods sold:
Food ...........................................30,000 ........................December 30, 2017
Souvenirs ......................................60,000 ........................December 30, 2017
Performers ...................................100,000 ............................January 5, 2018
Cleaning of coliseum .......................10,000 ...........................February 1, 2018
Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8-10, 2018.
Calculate Duck's net income from the concert for tax purposes for 2017.