Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in
Question:
Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in 2020. Dana's business income for 2020 is 530,000 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?
Transcribed Image Text:
Accounts receivable Accounts payable December 31, 2019 $16,000 15,200 December 31, 2020 $25,300 11,800
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a The amount of the adjustment is 800 16000 15200 The receivables have not ...View the full answer
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Related Book For
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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