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Augustus1 Augustus1
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Alex is a calendar year sole proprietor. He began business on December 1, this year. He uses the accrual method of accounting. Alex had the following collections in December.

   Collected $7,000 in December, from clients who paid cash for services to be performed next year.
   Collected $5,000 in December, for services performed during December; deposited in an operating 
        account on December 31, this year.
   Collected $12,000 in December; on accounts receivable for services performed in December;
       deposited in operating account on January 2, next year.

What is the amount Alex must include in his income for December?
A) $7,000
B) $12,000
C) $17,000
D) $24,000
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
Authors:
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We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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MsLippyMsLippy
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Augustus1 Author
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7 years ago
Your explanation helped, amazing amazing!
We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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