Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ryan operates a sole-proprietorship that provides handyman services. He uses the cash basis method of accounting. How much income should Ryan report on his Schedule

Ryan operates a sole-proprietorship that provides handyman services. He uses the cash basis method of accounting. How much income should Ryan report on his Schedule C if this year he receives the following:

  • $750 cash received from a customer for services provided.
  • Customer's promise to pay $400 for services rendered.
  • 1099-NEC showing non-employee compensation of $1,800.
  • $600 cash received from a customer for pre-payment of services to be provided in January.

Group of answer choices

$400

$3,150

$750

$2,200

$1,800

$3,550

$1,150

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

CAPM

Answered: 1 week ago

Question

denigration of emotional outbursts; being reserved;

Answered: 1 week ago