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 2017. Dana€™s business income for 2017 is $30,000 computed on the accrual method. Her books show the following:

December 31, December 31, 2017 2016 Accounts receivable Accounts payable $16,000 15,200 $25,300 11,800

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

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Federal Taxation 2017 Individuals

ISBN: 9780134420868

30th Edition

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

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Question Posted: Apr 02, 2018 05:50 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, December 31, 2017 2016 Accounts receivable Accounts payable $16,000 15,200 $25,300 11,800

Step by Step Answer:

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

Federal Taxation 2017 Individuals

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