Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in
Question:
a. What adjustment is necessary to Danas income?
b. How should Dana report the adjustment?
Transcribed Image Text:
December 31, December 31, 2018 $25,300 11,800 2017 Accounts receivable Accounts payable $16,000 15,200
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
a The amount of the adjustment is 800 16000 15200The receivables have not ...View the full answer
Answered By
Sufiyan Ahmed Tariq
I am a Chartered Accountant and an Associate Public & Finance Accountant. I also hold a bachelors of Commerce degree. I have over 8 years of experience in accounting, finance and auditing. Through out my career, I have worked with many leading multinational organisation.
I have helped a number of students in studies by teaching them key concepts of subjects like accounting, finance, corporate law and auditing. I help students understanding the complex situation by providing them daily life examples.
I can help you in the following subject / areas:
a) Accounting;
b) Finance;
c) Commerce;
d) Auditing; and
e) Corporate Law.
4.90+
7+ Reviews
17+ Question Solved
Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted:
Students also viewed these Business questions
-
What advantages does a cash method taxpayer gain by electing to accrue foreign taxes for foreign tax credit purposes?
-
Clyde is a cash method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in...
-
When is a cash method taxpayer allowed to deduct deposits?
-
PLEASE, PLEASE use an Excel formula:1. Begin the formula with an = sign.2. Reference cells, instead of entering values.Example: =PV(H8+H9) A company borrowed money from a local bank. The note the...
-
What is data modeling? What is its purpose? Briefly describe three commonly used data models.
-
Two controversial "hard" insecticides are aldrin and dieldrin. [The Environmental Protection Agency (EPA) halted the use of these insecticides because of possible harmful side effects and because...
-
Falafel Hut operates fast food restaurants in the food courts of shopping malls. Its main product is a serving of falafel that requires ground chick peas (direct material) and food preparation...
-
Orbital Communications has operating plants in over 100 countries. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 150,000 kronas in Norway worth...
-
Choose the correct answer below. OA. A frequency distribution is a type of data presentation. The first column contains the first part of each data item. The second column contains the second part of...
-
Gear 2, in the figure, has 16 teeth, a 20 transverse angle, a 15 helix angle, and a module of 4 mm. Gear 2 drives the idler on shaft b, which has 36 teeth. The driven gear on shaft c has 28 teeth. If...
-
BCD Partnership has, for many years, had a March 31 year-end. The partnerships net income for the fiscal year ended March 31, 2018 is $400,000. Because of its fiscal year, BCD has $100,000 on deposit...
-
On January 30, 2017, Amy sells land to Bob for a stated price of $200,000. The full $200,000 is payable on January 30, 2019. No interest is stated. Amy, a cash-method taxpayer, purchased the land in...
-
Majority Corporation owns 90% of Subsidiary Corporations stock and has a $45,000 basis in that stock. Mindy owns the other 10% and has a $5,000 basis in her stock. Subsidiary holds $20,000 cash and...
-
assuming a cow is fed with 15 kg of hay every day and it grows from 100 kg to 400 kg in 300 days. the energy density of the hay is 12 MJ/kg, and the energy density of the cow is 10 MJ/kg. what is the...
-
Explain why expertise in security, data management, and automation is important for an organization to make the best use of cloud services.
-
Rangel Corporation issued $520,000 of 5%, 15-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. Rangel...
-
State and explain one of the characteristics of resilience from Rodin's five characteristics of resilience that must be addressed by the country to achieve disaster resilience in the future
-
What are the potential implications of quantum computing on the future of fintech, particularly in areas such as cryptography, risk modeling, and algorithmic trading, and how are financial...
-
When are short-term notes payable issued?
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
Indicate in each of the following independent situations whether the taxpayer can accomplish what is proposed. Provide adequate authority for your answer including any special elections that are...
-
Oliver organized North Corporation 15 years ago. The corporation made an S election last year after it accumulated $60,000 of E&P as a C corporation. As of December 31 of the current year, the...
-
Theta Corporation formed 15 years ago. In its first year, it elected to use the cash method of accounting and adopted a calendar year as its tax year. It made an S election on August 15 of last year,...
-
(A) You are the manager responsible for performing hot reviews on audit files where there is a potential disagreement between your firm and the client regarding a material issue. You are reviewing...
-
The transactions listed below are typical of those involving New Books Incorporated and Readers Corner. New Books is a wholesale merchandiser and Readers Corner is a retail merchandiser. Assume all...
-
Oriole, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials...
Study smarter with the SolutionInn App