Bart Berman is an accrual basis taxpayer who provides marketing consulting services. His biggest client pays him $200,000 on July 1, 2015, for a two-year contract. Bart includes $200,000 in income in 2015 Bart may include $50,000 in income for 2015. $100,000 for 2016, and $50,000 in 2017 Bart may include $50,000 in income in 2015, and $150,000 in 2016 Bart includes $200,000 in income in 2016.
Bart Berman is an accrual basis taxpayer who provides marketing consulting services. His biggest client pays him $200,000 on July 1, 2015, for a two-year contract. Bart includes $200,000 in income in 2015 Bart may include $50,000 in income for 2015. $100,000 for 2016, and $50,000 in 2017 Bart may include $50,000 in income in 2015, and $150,000 in 2016 Bart includes $200,000 in income in 2016.
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 36P
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Bart Berman is an accrual basis taxpayer who provides marketing consulting services. His biggest client pays him $200,000 on July 1, 2015, for a two-year contract.
- Bart includes $200,000 in income in 2015
- Bart may include $50,000 in income for 2015. $100,000 for 2016, and $50,000 in 2017
- Bart may include $50,000 in income in 2015, and $150,000 in 2016
- Bart includes $200,000 in income in 2016.
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