Freida is an accrual-basis taxpayer who owns a furniture store. The furniture store had the following sales of inventory: For tax purposes, Freida should report gross profit for 2015 of

Question

Freida is an accrual-basis taxpayer who owns a furniture store. The furniture store had the following sales of inventory:  For tax purposes, Freida should report gross profit for 2015 of

Quizplus · Accepted Answer

Taxpayers may not use the installment method for sales of inventory so full profit is recognized in the year of sale regardless of year of collection.

Freida Is an Accrual-Basis Taxpayer Who Owns a Furniture Store