Lyle Inc. is a cash-basis, calendar-year taxpayer. In 2018, it changes to the accrual method of accounting.
Question:
Lyle Inc. is a cash-basis, calendar-year taxpayer. In 2018, it changes to the accrual method of accounting. Its 2018 income computed under the accrual method is \(\$ 75,000\). The following information also is available:
What is Lyle's required adjustment to income for 2018 and how should Lyle report it?
Transcribed Image Text:
Accounts receivable Accounts payable December 31, December 31, 2017 2018 $27,000 19,000 $34,000 23,500
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Related Book For
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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