Dustin has a contract to provide services to Dado Enterprises. In November of year 0, Dustin billed
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a. What amount of revenue must Dustin recognize in year 0 if Dustin uses the cash method and Dado remits payment and Dustin receives payment for the services in December of year 0? What amount can Dado deduct in year 0?
b. What amount of revenue must Dustin recognize in year 0 if Dustin uses the accrual method, and Dado remits payment and Dustin receives payment for the services in December of year 0? What amount can Dado deduct in year 0?
c. What amount of revenue must Dustin recognize in year 0 if Dustin uses the cash method and Dado remits payment and Dustin receives payment for the services in January of year 1? What amount can Dado deduct in year 0?
d. What amount of revenue must Dustin recognize in year 0 if Dustin uses the accrual method and Dado remits payment and Dustin receives payment for the services in January of year 1? What amount can Dado deduct in year 0?
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Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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