Question
Al is a medical doctor who conducts his practice as a sole proprietorship. In 2021, he received cash of $280,000 for medical services. Of that
Al is a medical doctor who conducts his practice as a sole proprietorship. In 2021, he received cash of $280,000 for medical services. Of that amount, $40,000 was for services provided in 2020. At the end of 2021, he had accounts receivable of $80,000.
What income should Al report for the year if he is a cash basis TP?
What income should Al report for the year if he is an accrual basis TP?
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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
Authors: James Smith, William Raabe, David Maloney, James Young
18th Edition
9781285438290, 1285439740, 1285438299, 978-1285439747
