Luisa is a CPA, she operates a tax return preparation service business as a sole proprietorship. During
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Question:
Luisa is a CPA, she operates a tax return preparation service business as a sole proprietorship. During 2021, she received cash of $125,000 for tax return preparation services. Of the amount received in 2021, $15,000 relates to payment of late invoices for tax services provided during 2020. Luisa also has accounts receivable of $22,000 for services provided in 2021. Compute Luisa's Gross Income under
(a) the cash method of accounting
(b) the accrual method of accounting. SHOW YOUR WORK!
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: