Todd operates a business using the cash basis of accounting. At the end of last year, Todd
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Todd operates a business using the cash basis of accounting. At the end of last year, Todd was granted permission to switch his sales on account to the accrual method. Last year Todd made $428,000 of sales on account and $67,200 was uncollected at the end of the year. What is the Todd's §481 adjustment for this year?
a) Increase income by $428,000.
b) Increase income by $16,800.
c) Increase expenses by $67,200.
d) Increase expenses by $428,000.
e) Todd has no §481 adjustment this year.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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