I:11-52 Change of Accounting Method. Dana manages real estate and is a cash method taxpayer. She changes

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I:11-52 Change of Accounting Method. 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:

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

a. What adjustment is necessary to Dana’s income?

b. How should Dana report the adjustment?

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Pearsons Federal Taxation Corporations Partnerships Estates And Trust 2023

ISBN: 9780137730391

36th Edition

Authors: KENNETH E. ANDERSON, DAVID S. HULSE, TIMOTHY J. RUPERT Richard J. Joseph LeAnn Luna

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Question Posted: Jul 19, 2024 09:02 PM

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I:11-52 Change of Accounting Method. Dana manages real estate and is a cash method taxpayer. She changes

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Pearsons Federal Taxation Corporations Partnerships Estates And Trust 2023

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