Compute Mary’s income or deductions for 2019 using (1) the cash basis and (2) the accrual basis for each of the following.

a. In May 2019, Mary paid a license fee of $1,200 for the period June 1, 2019, through May 31, 2020.

b. In December 2019, Mary collected $10,000 for January 2020 rents. In January 2019, Mary collected $2,000 for December 2019 rents.

c. In June 2019, Mary paid $7,200 for an office equipment service contract for the period July 1, 2019, through December 31, 2020.

d. In June 2019, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave a $142,000 interest-bearing note for the balance. The office furniture has a MACRS cost recovery period of seven years. Mary did not make the § 179 election and elected not to take additional first-year depreciation.