David purchased a deli shop on February 1st of last year and began to operate it as a soleproprietorship. David reports his personal taxes using the cash method over a calendar year, and he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized his receipts and expenses through January 31st of this year as follows: What income should David report from his sole proprietorship?

Question

David purchased a deli shop on February 1st of last year and began to operate it as a soleproprietorship. David reports his personal taxes using the cash method over a calendar year, and he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized his receipts and expenses through January 31st of this year as follows:  What income should David report from his sole proprietorship?

Quizplus · Accepted Answer

The Answer of David purchased a deli shop on February 1st of last year and began to operate it as a soleproprietorship. David reports his personal taxes using the cash method over a calendar year, and he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized his receipts and expenses through January 31st of this year as follows:  What income should David report from his sole proprietorship?

David Purchased a Deli Shop on February 1st of Last