3. Emily, who is single, has been offered a position as a city landscape consultant. The position pays $150,000 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use thetax rate schedules.) . What is her Taxable Income? What is her Tax Liability?

4. Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2020 in each of the following independent cases:

a. A taxpayer completes $300 of accounting services in December 2020 for a client who pays for the accounting work in January 2021.

b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2020, she rents a computer for a $120 rental fee and receives a $300 deposit. The customer returns the computer and is refunded the deposit on December 20, 2020

c.An accountant agrees to perform $325 of tax services for an auto mechanic who has agreed to perform repairs onthe car of the accountant's wife. The mechanic repairs the car in December 2020 and the accountant starts and completes the tax work in March 2021.

31. Al is a medical doctor who conducts his practice as a sole proprietor. In 2021, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2020. At the end of 2021, Al had accounts receivable of $60,000, all for services rendered in 2021. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2022. Compute Al's gross income for 2021:

a. Using the cash basis of accounting.

b. Using the accrual basis of accounting.

c. Advise Al on which method of accounting he should use.

35. 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.