On December 1, 2019, Daniel, an accrual basis taxpayer, collects $12,000 rent for December 2019 and $12,000 for
January 2020.Daniel must include the $24,000 in 2019 gross income.

Question

Quizplus · Accepted Answer

An accrual basis taxpayer must include income when it is earned, regardless of when it is received. In this case, the rent for December 2019 and January 2020 is considered earned income for December 2019, so Daniel must include the $24,000 in 2019 gross income.

On December 1, 2019, Daniel, an Accrual Basis Taxpayer, Collects