Determine the effects of the following on a cash basis taxpayers gross income for 2021 and 2022:
Question:
Determine the effects of the following on a cash basis taxpayer’s gross income for 2021 and 2022:
a. On the morning of December 31, 2021, the taxpayer received a $1,500 check from a customer. The taxpayer did not cash the check until January 3, 2022.
b. The same as part (a), except that the customer asked the taxpayer not to cash the check until January 3, 2022, after the customer’s salary check could be deposited.
c. The same as part (a), except that the check was not received until after the bank had closed on December 31, 2021.
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Related Book For
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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