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Sara's Income for the year

Sara, who gives music lessons, is a calendar year taxpayer using the accrual method of accounting. On Oct. 1 of this year she received 25,000 for a one year contract beginning on the date to provide 10 lessons. She gave 6 lessons this year. How much should Sara include in income this year?

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This method of accounting is more precise than the cash method. Its main purpose is to match ...

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This solution is comprised of a detailed explanation to answer how much should Sara include in income this year.

$2.19