Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in

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Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in 2023. Dana’s business income for 2023 is $30,000 computed on the accrual method. Her books show the following:

a. What adjustment is necessary to Dana’s income?
b. How should Dana report the adjustment?

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Pearsons Federal Taxation 2023 Comprehensive

ISBN: 9780137840656

36th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse

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Question Posted: Feb 14, 2023 06:22 AM

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Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in

Question:

Accounts receivable Accounts payable December 31, 2022 $16,000 15,200 December 31, 2023 $25,300 11,800

Step by Step Answer:

a The amount of the adjustment is 800 16000 15200 The receivables have not ...View the full answer

Pearsons Federal Taxation 2023 Comprehensive

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