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please provide the answers for both questions. thank you Al is a medical doctor who conducts his practice as a sole proprietor. During 2022, he
please provide the answers for both questions. thank you
Al is a medical doctor who conducts his practice as a sole proprietor. During 2022, he received cash of $550,800 for medical services. Of the amount collected, $51,600 was for services provided in 2021. At the end of 2022, Al had accounts receivable of $94,800, all for services rendered in 2022. In addition, at the end of the year, Al recelved $12,500 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2023. a. Compute Ar's gross income for 2022 using the cash basis of accounting. b. Compute Al's gross income for 2022 using the accrual basis of accounting. c. Advise Al on which method of accounting he should use. Al should use the of accounting so that he will not have to pay income taxes on the Exerciee 5-25 (Agerithmic) (LO. 1, 2) Farrod recelves a scholarship of 533,400 from East State Univenity to be ased to pursue a bochelor's degree. He spends $20,040 on tuition, 51,670 on books abd suppliek, 56,6e9 tor roam and board, and 55,610 for personal expenses. How much may larrod excluoe from his grows income? Al is a medical doctor who conducts his practice as a sole proprietor. During 2022, he received cash of $550,800 for medical services. Of the amount collected, $51,600 was for services provided in 2021. At the end of 2022, Al had accounts receivable of $94,800, all for services rendered in 2022. In addition, at the end of the year, Al recelved $12,500 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2023. a. Compute Ar's gross income for 2022 using the cash basis of accounting. b. Compute Al's gross income for 2022 using the accrual basis of accounting. c. Advise Al on which method of accounting he should use. Al should use the of accounting so that he will not have to pay income taxes on the Exerciee 5-25 (Agerithmic) (LO. 1, 2) Farrod recelves a scholarship of 533,400 from East State Univenity to be ased to pursue a bochelor's degree. He spends $20,040 on tuition, 51,670 on books abd suppliek, 56,6e9 tor roam and board, and 55,610 for personal expenses. How much may larrod excluoe from his grows income Step by Step Solution
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