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Sole proprietorship that uses a calendar year and the accrual method of accounting. help in preparing his 2019 schedule c a)In November of 2018, Bud
Sole proprietorship that uses a calendar year and the accrual method of accounting. help in preparing his 2019 schedule c
a)In November of 2018, Bud Knows His Brown collected $50,000 for the sale of inventory. The inventory was delivered in February 2019 and was recognized for book purposes in 2019.
b)On October 31, 2019 Bud prepays 12,000 (1,000 per month) to an advertising company to provide advertising services for 12 months beginning January 1, 2020.
c)In 2019, Bud Knows His Brown paid $80,000 in business interest on loans used to buy the fixed assets. Assume the business interest limitation applies.
d) In 2019, Bud Knows His Brown begins work on a large mall. As part of the contract, Bud Knows His Brown anticipates that it will incur $5,000 in costs at the completion of the job in 2020 to clean up the job site. Bud Knows His Brown is required to accrue the expense for financial accounting purposes
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