Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in
Question:
Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in 2023. Dana’s business income for 2023 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?
Transcribed Image Text:
Accounts receivable Accounts payable December 31, 2022 $16,000 15,200 December 31, 2023 $25,300 11,800
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a The amount of the adjustment is 800 16000 15200 The receivables have not ...View the full answer
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Related Book For
Pearsons Federal Taxation 2023 Comprehensive
ISBN: 9780137840656
36th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse
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