For 2019, Essence Company, a calendar year taxpayer, will change from using the cash method for tax
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For 2019, Essence Company, a calendar year taxpayer, will change from using the cash method for tax purposes to the accrual method. At the end of 2018, Essence showed the following items.
Accounts receivable...........................$200,000
Accounts payable..................................135,000
Bank loan...............................................100,000
What is the § 481(a) adjustment for this change in accounting method? Be sure to state whether it is positive or negative.
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Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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