Al is a medical doctor who conducts his practice as a sole proprietorship. In 2021, he received

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Al is a medical doctor who conducts his practice as a sole proprietorship. In 2021, he received cash of $280,000 for medical services. Of that amount, $40,000 was for services provided in 2020. At the end of 2021, he had accounts receivable of $80,000.

What income should Al report for the year if he is a cash basis TP?
What income should Al report for the year if he is an accrual basis TP?

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South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities

ISBN: 9781285438290

18th edition

Authors: James Smith, William Raabe, David Maloney, James Young

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Posted Date: Mar 08, 2022 06:26 AM

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Al is a medical doctor who conducts his practice as a sole proprietorship. In 2021, he received

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Income to be recognised if he is a cash basis TP Cash recei... View the full answer

South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities

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