On December 1,2013,Daniel,an accrual basis taxpayer,collects $12,000 rent for December 2013 and $12,000 for January 2014.Daniel must include the $24,000 in 2013 gross income.

Question

Quizplus · Accepted Answer

According to the accrual basis of accounting, income is recognized when it is earned regardless of when it is received. In this case, Daniel has earned $24,000 in rent for the months of December 2013 and January 2014, and therefore must include it in his 2013 gross income.

On December 1,2013,Daniel,an Accrual Basis Taxpayer,collects $12,000 Rent for December