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Wahoo, Incorporated, a calendar year taxpayer, leases equipment to a customer for $4,500 monthly rent. On November 27, 2023, Wahoo received a $36,000 rent payment
Wahoo, Incorporated, a calendar year taxpayer, leases equipment to a customer for $4,500 monthly rent. On November 27, 2023, Wahoo received a $36,000 rent payment for the eight-month period beginning on December 1. Required: How much of the payment must Wahoo recognize as 2023 taxable income assuming that Wahoo uses the cash method of accounting for tax purposes? How much of the payment must Wahoo recognize as 2023 taxable income assuming that Wahoo uses the accrual method of accounting for tax purposes
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