Subject: Professional Income (Billed Basis Of Recognition)

Jack Winters is a lawyer who has always used the billed basis of revenue recognition. On January 1, 2020, he had unbilled work in process of $35,000. During the year ending December 31, 2020, he bills the $35,000 work in process balance from January 1 and his work results in potential billings of $245,000. Of this amount, $185,000 has been billed during 2020. During the year ending December 31, 2021, he bills the work in process balance from January 1, 2021, and his work during the year results in potential billings of $285,000. Of this amount, $247,000 has been billed during 2021. Calculate his inclusion in net business income for 2020 and 2021