Norah,who Gives Music Lessons,is a Calendar Year Taxpayer Using the Cash
Norah,who gives music lessons,is a calendar year taxpayer using the cash basis method of accounting.On October 1 of this year,she received $1,200 for a one-year contract beginning on that date to provide 10 lessons.She gave 6 lessons this year.How much should Norah include in income this year?
Examples of income which are constructively received include all of the following except
A)interest credited to a savings account.
B)a check received after banking hours.
C)a paycheck received from employer,when employer does not have funds in the bank to cover the check.
D)dividends available on December 31; unclaimed dividends will be mailed out.
Ms.Marple's books and records for 2014 reflect the following information: What is the amount Ms.Marple should include in her gross income in 2014?
One of the requirements that must be met in order to defer recognition of income for advance payments for goods is
A)the taxpayer's method of accounting for the sale for tax purposes is the same as the method used for financial reporting purposes.
B)the goods are on the taxpayer's premises on the last day of the tax year.
C)the goods are produced in the United States.
D)the amount received is more than the taxpayer's cost of the goods.