Your client operates a business under the cash method of accounting and uses the calendar year for the tax year. On November 30, 20X1, she finished a consulting job and billed the client, who sent her a check on January 6, 20X2.

How should she treat this income and why?

A)

Half as 20X1 income and half as 20X2 income.

B)

One-twelfth as 20X1 income and eleven-twelfths as 20X2 income

C)

As 20X2 income, because the check was received during that year

D)

As 20X1 income, because the income was earned during that year