Mark is a physical therapist and a client. On February 1, 2020, Mark starts his own business, Mark’s PT Services, LLC. He uses Quickbooks for his accounting. He comes to meet with you on March 1, 2021 and brings his financial statements for Mark’s PT Services, LLC. His financial statements show the following: Cash 40,000.00 Accounts Receivable 7,500.00 Equipment 32,000.00 Accumulated Depreciation (8,000.00) Total Assets 71,500.00 Accounts Payable 3,300.00 Equity - Mark 10,000.00 Net Income 58,200.00 Total Liabilities & Equity 71,500.00 What is Mark’s taxable income from his business under the accrual method? Under the cash method?

Answer rating: 100% (QA)

Solution Answer is highlighted in yellow a ... View the full answer