Question
Anna, LLC, is an accrual basis taxpayer. In December 2020, Anna prepays $36,000 for an insurance policy that runs 1/1/21 12/31/21. They also receive rental
Anna, LLC, is an accrual basis taxpayer. In December 2020, Anna prepays $36,000 for an insurance policy that runs 1/1/21 12/31/21. They also receive rental income from their tenant of $48,000 for the year 2/1/21 1/31/22. How much gross income does Anna, LLC have to recognize in 2020?.
a. $12,000
b. $42,000
c. $48,000
d. None of these
e. $0
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Contemporary Auditing
Authors: Knapp, Rittenberg
1st Edition
1133731244, 978-1133731245
