Anderson, a calendar year taxpayer, operates a small service business. For the tax- year 2021, Anderson's records indicated the following: 1. Cash Received: $590,000 The following items occurred in 2021: a. Check received 12-31-2021 but cashed 1-3-2022 $5,000 b. He received and advance payment in 2020 for a 3 year service contract to perform in 2020, 2021, 2022. (equally each year) $6,000 a. In 2021 received a refundable damage deposit on property Anderson leases to Smith. It is in cash above: $3,000 1. Received Notes in 2021 for services rendered: FAIR MARKET VALUE $15,000 FACE VALUE $50,000 1. 2021 Accounts Receivable for Services in 2021 $120,000 1. Received Notes in 2021 for services rendered: FAIR MARKET VALUE $15,000 FACE VALUE $50,000 1. 2021 Accounts Receivable for Services in 2021 $120,000 (Included in accounts receivable is $4,000 of payments on accounts for which he received payments by check, in 2021 but did not cash the check until 1-5-2022) In addition to the above, Smith indicates the following: 4. Bank XYZ credited $3,000 of interest to Anderson's account, 5. Anderson belongs to a barter club. In 2021 Anderson performed services for which the club granted 1,000 points worth $1 per point. The points can be exchanged at any time for goods or services.Anderson exchanged the 1,000 points for a new stereo on 1-15-2022. A. Compute the 2021 gross income using the cash basis methods (7.5 points). B. Compute the 2021 gross income using the accrual basis method (7.5 points). List the all items that affect your calculation. Anderson, a calendar year taxpayer, operates a small service business. For the tax- year 2021, Anderson's records indicated the following: 1. Cash Received: $590,000 The following items occurred in 2021: a. Check received 12-31-2021 but cashed 1-3-2022 $5,000 b. He received and advance payment in 2020 for a 3 year service contract to perform in 2020, 2021, 2022. (equally each year) $6,000 a. In 2021 received a refundable damage deposit on property Anderson leases to Smith. It is in cash above: $3,000 1. Received Notes in 2021 for services rendered: FAIR MARKET VALUE $15,000 FACE VALUE $50,000 1. 2021 Accounts Receivable for Services in 2021 $120,000 1. Received Notes in 2021 for services rendered: FAIR MARKET VALUE $15,000 FACE VALUE $50,000 1. 2021 Accounts Receivable for Services in 2021 $120,000 (Included in accounts receivable is $4,000 of payments on accounts for which he received payments by check, in 2021 but did not cash the check until 1-5-2022) In addition to the above, Smith indicates the following: 4. Bank XYZ credited $3,000 of interest to Anderson's account, 5. Anderson belongs to a barter club. In 2021 Anderson performed services for which the club granted 1,000 points worth $1 per point. The points can be exchanged at any time for goods or services.Anderson exchanged the 1,000 points for a new stereo on 1-15-2022. A. Compute the 2021 gross income using the cash basis methods (7.5 points). B. Compute the 2021 gross income using the accrual basis method (7.5 points). List the all items that affect your calculation
