Comprehensive Problem $9-82($LO $9-1,$ LO $9-2,$ LO $9-3,$ LO $9-4)($Algo$)$

Bryan followed in his father's footsteps and entered the carpet business. He owns and operates I Do Carpet $($IDC$).$ Bryan prefers to install carpet only, but in order to earn additional revenue, he also cleans carpets and sells carpet$-$cleaning supplies.

a$.$ IDC contracted with a homebuilder in December of last year to install carpet in $10$ new homes being built. The contract price of $$80,500$ includes $$50,200$ for materials $($carpet$).$ The remaining $$30,300$ is for IDC's service of installing the carpet. The contract also stated that all money was to be paid up front. The homebuilder paid IDC in full on December $28$ of last year. The contract required IDC to complete the work by January $31$ of this year. Bryan purchased the necessary carpet on January $2$ and began working on the first home January $4.$ He completed the last home on January $27$ of this year.

b$.$ IDC finalized several other contracts this year and completed the work before year$-$end. The work cost $$132,000$ in materials, and IDC elects to immediately deduct supplies. Bryan billed out $$240,200$ but only collected $$220,000$ by year$-$end. Of the $$20,200$ still owed to him, Bryan wrote off $$3,050$ he didn't expect to collect as a bad debt from a customer experiencing extreme financial difficulties.

c$.$ IDC agreed to a three$-$year contract to clean the carpets of an office building. The contract specified that IDC would clean the carpets monthly from July $1$ of this year through June $30$ three years hence. IDC received payment in full of $$8,676($ $$241$ a month for $36$ months$)$ on June $30$ of this year.

d$.$ IDC sold $100$ bottles of carpet stain remover this year for $$5$ per bottle $($it collected $$500).$ IDC sold $40$ bottles on June $1$ and $60$ bottles on November $2.$ IDC had the following carpet$-$cleaning supplies on hand for this year, and IDC has elected to use the LIFO method of accounting for inventory under a perpetual inventory system:

$\backslash$table$[[$Purchase Date,Bottles,Total Cost$],[$November last year,$40,$$$128],[$February this year,$35,116],[$July this year,$25,90],[$August this year,$40,150],[$Totals$,140,$$$484]]$

e$.$ On August $1$ of this year, IDC needed more room for storage and paid $$960$ to rent a garage for $12$ months.

f$.$ On November $30$ of this year, Bryan decided it was time to get his logo on the sides of his work van. IDC hired We Paint Anything incorporated $($WPA$)$ to do the job. It paid $$520$ down and agreed to pay the remaining $$1,560$ upon completion of the job. WPA indicated it wouldn't be able to begin the job until January $15$ of next year, but the job would only take one week to complete. Due to circumstances beyond its control, WPA was unable to complete the job until April $1$ of next year, at which time IDC paid the remaining $$1,560.$

g$.$ In December, Bryan's son, Aiden, helped him finish some carpeting jobs. IDC owed Aiden $$620($reasonable$)$ compensation for his work. However, Aiden did not receive the payment until January of next year.

h$.$ IDC also paid $$1,200$ for interest on a short$-$term bank loan relating to the period from November $1$ of this year through March $31$ of next year.

Required:

Compute his taxable income for the current year considering the above items.

Note: Enter zero for no effect on taxable income. Do not round intermediate calculations.

$\backslash$table$[[,$Cash Method,Accrual Method$],[$a$.$ Prepaid carpeting services,$$,80,500],[$b$.$ Carpeting services,$220,000,240,200],[$c$.$ Cleaning services,$8,676,1,446,],[$d$.$ Stain remover sales,$500,500],[$Gross Income,$229,176,322,646],[$a$.$ Carpet supplies,$50,200,50,200],[$b$.$ Materials needed for contracts,$132,000,,132,000],[$d$.$ Stain remover$],[$Supplies $($Cost of goods sold$)],[$Gross Profit$],[$b$.$ Bad debt$],[$e$.$ Prepaid rent$],[$f$.$ Prepaid paint job$],[$g$.$ Compensation to Aiden$],[$h$.$ Prepaid interest$],[$Total Deductions$],[$Taxable Income,,$]]$