Malo, Incorporated uses a fiscal year ending June $30.$ On May $29,$ Malo received a check for $$3,900$ from a business that leases

parking spaces in Malo's parking garage. This payment was for the three$-$month period beginning June $1.$ On June $15,$ Malo sent an

invoice for $$5,500$ to a customer for services rendered during May and June. Malo received payment from the customer on July $3.$

Required:

a$.$ If Malo is a cash basis taxpayer, how much income should it recognize from the given transactions in the current fiscal year?

b$.$ If Malo is an accrual basis taxpayer, how much income should it recognize from the given transactions in the current fiscal year?

Complete this question by entering your answers in the tabs below.

If Malo is an accrual basis taxpayer, how much income should it recognize from the given transactions in the current fiscal

year?