Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1^st of this year, Mike received $20,700 for five outfitting trips. This is the first time Mike agreed to such a payment and he is obligated to outfit one trip per year for the next five summers, beginning this year. How much income must Mike recognize in each of the next five years if he is attempting to minimize his tax burden?

Question

Quizplus · Accepted Answer

The Answer of Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1^st of this year, Mike received $20,700 for five outfitting trips. This is the first time Mike agreed to such a payment and he is obligated to outfit one trip per year for the next five summers, beginning this year. How much income must Mike recognize in each of the next five years if he is attempting to minimize his tax burden?

Mike Operates a Fishing Outfitter as an Accrual-Method Sole Proprietorship