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?
This method of accounting is more precise than the cash method. Its main purpose is to match ...
This solution is comprised of a detailed explanation to answer how much should Sara include in income this year.