Question
In which of the following situations is income taxable in Year 1 to Belinda. Belinda owns an architectural firm and reports on the cash basis.
In which of the following situations is income taxable in Year 1 to Belinda. Belinda owns an architectural firm and reports on the cash basis.
I. Belinda received $6,000 from a client on December 28, Year 1. She deposited the check on December 29 but it was rejected because the client's bank account did not have sufficient funds.
II. Belinda was offered $5,000 from a client on December 31, Year 1 but she refused to accept the payment and asked the client to mail the check to her the next week.
III. Belinda received a $4,000 check from a client on December 29, Year 1 but did not deposit in her checking account until January 4, Year 2.
a. I only
b. II only
c. II and III only
d. I, II, and III
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Get StartedRecommended Textbook for
Microeconomics
Authors: Dean Karlan, Jonathan Morduch
1st edition
978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531
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