yage Digital + agenow.com/ilrn/classContent/lis Problem 4-31 (LO. 2,5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $280,000 for medical services of the amount collected, S40,000 was for services provided in 2019. At the end of 2020, Al had accounts receivable of $60,000, all for services rendered in 2020. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2021 a. Compute Als gross income for 2020 using the cash basis of accounting. b. Compute Als gross income for 2020 using the accrual basis of accounting c. Advise Al on which method of accounting he should use Al should use the of accounting so that he will not have to pay income taxes on the Tax Drill - Divorce Settlements Casper and Cecile are divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Cecile sold the stock a month after receiving it for $40,000. In addition Casper is required to pay Cecile $1,500 a month in alimony. He made five payment to her during the year What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". Casper recognizes on the transfer of the stock. He receives for the $7,500 alimony paid. Cecile recognizes on the transfer of the stock. She has from the $7,500 alimony received. When she sells the stock Cecile reportes of s yage Digital + agenow.com/ilrn/classContent/lis Problem 4-31 (LO. 2,5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $280,000 for medical services of the amount collected, S40,000 was for services provided in 2019. At the end of 2020, Al had accounts receivable of $60,000, all for services rendered in 2020. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2021 a. Compute Als gross income for 2020 using the cash basis of accounting. b. Compute Als gross income for 2020 using the accrual basis of accounting c. Advise Al on which method of accounting he should use Al should use the of accounting so that he will not have to pay income taxes on the Tax Drill - Divorce Settlements Casper and Cecile are divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Cecile sold the stock a month after receiving it for $40,000. In addition Casper is required to pay Cecile $1,500 a month in alimony. He made five payment to her during the year What are the tax consequences for Casper and Cecile regarding these transactions? If an amount is zero, enter "$0". Casper recognizes on the transfer of the stock. He receives for the $7,500 alimony paid. Cecile recognizes on the transfer of the stock. She has from the $7,500 alimony received. When she sells the stock Cecile reportes of s
