Frank Johnson owned and operated an apple orchard. He used the cash method of accounting. He...
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Frank Johnson owned and operated an apple orchard. He used the cash method of accounting. He sold and delivered 1,000 bushels of apples to a canning factory for $2,000, but did not receive payment before his death. The proceeds from the sale are income in respect of a decedent. When the estate was settled, payment had not been made and the estate transferred the right to the payment to his widow. Also, the income was not reported on the final return of the decedent or on the return of the estate. When Frank's widow collects the $2,000, she must Include what amount in her income tax return? A. $0 B. $500 C. $1,000 D. $2,000 Frank Johnson owned and operated an apple orchard. He used the cash method of accounting. He sold and delivered 1,000 bushels of apples to a canning factory for $2,000, but did not receive payment before his death. The proceeds from the sale are income in respect of a decedent. When the estate was settled, payment had not been made and the estate transferred the right to the payment to his widow. Also, the income was not reported on the final return of the decedent or on the return of the estate. When Frank's widow collects the $2,000, she must Include what amount in her income tax return? A. $0 B. $500 C. $1,000 D. $2,000
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Related Book For
Essentials of Federal Taxation 2018
ISBN: 9781260007640
9th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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