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Required: Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2020 in each of the following independent cases:
Required: 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 $750 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 $280 rental fee and receives a $700 deposit. The customer returns the computer and is refunded the deposit on December 20, 2020. c. Same facts as (b) except that the computer is retumed on Januory 5. 2021 d. On December 18, 2020, a landiord rents an apartment for $655 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out e. An accountant agrees to perform $405 of tax services for an auto mechanic who has agreed to perform repairs on the car of the accountants wife. The mechanic repairs the car in December 2020 and the accountant starts and completes the tax work in March 2021. Complete the question by entering your answers in the tabs below. Req a to d Reg e a. A taxpayer completes $750 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 $280 rental fee and receives a $700 deposit. The customer returns the computer and is refunded the deposit on December 20, 2020. c. Same facts as (b) except that the computer is returned on January 5, 2021. d. On December 18, 2020, a landlord rents an apartment for $655 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. Show less A Taxable income b. d. Complete the question by entering your answers in the tabs below. Req a to d Req e An accountant agrees to perform $405 of tax services for an auto mechanic who has agreed to perform repairs on the 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. Taxable income Year Accountant Mechanic 2020 2021
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a Even though the accounting services are done in December 2020 cash received is in January 2021 ie ...Get Instant Access to Expert-Tailored Solutions
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