Question
What is the amount of income to be reported by Don in 2010 under thecash basis method for the following items?Check for $1,200 received January
What is the amount of income to be reported by Don in 2010 under thecash basis method for the following items?Check for $1,200 received January 4, 2010 for services rendered inDecember 2009.Check for $900 received December 26, 2009 for services rendered inOctober 2009; did not cash until January 5, 2009.Dividend check for $500. Check was dated December 31, 2009, but it isthe practice of the issuing corporation to mail checks so they will not bereceived until January of the following year.Check for $600 received on April 1, 2010 for interest on corporate bondsheld for the period October 1, 2009 through March 31, 2010. Interest ispaid semi-annually on April 1 and October 1.Rental income of $800 for December 2010 received January 3, 2010
A) $1,800
B) $2,700
C) $3,500
D) $4,000
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