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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 36P
icon
Related questions
Question

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. 

  1. Bart includes $200,000 in income in 2015
  2. Bart may include $50,000 in income for 2015. $100,000 for 2016, and $50,000 in 2017
  3. Bart may include $50,000 in income in 2015, and $150,000 in 2016
  4. Bart includes $200,000 in income in 2016.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Determination of Tax Liability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage