Mr. Jonathan Volke is a lawyer with a medium sized practice in Halifax. At the beginning of 2020, he had unbilled work in process of $23,800, as well as uncollected billings of $27,200. During 2020, he bills all of the opening work in process. Also during 2020, his work creates potential billings of $187,200. Of this amount, $156,300 has been billed by the end of the year. Collections during the year include all of the opening $23,800 of unbilled amounts, all of the $27,200 of opening uncollected billings, as well as $124,600 of the $156,300 of new work that was billed during the year. Assuming that Jonathan is using the billed basis of recognition, calculate his net business income inclusion for 2020.

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The Answer of Mr. Jonathan Volke is a lawyer with a medium sized practice in Halifax. At the beginning of 2020, he had unbilled work in process of $23,800, as well as uncollected billings of $27,200. During 2020, he bills all of the opening work in process. Also during 2020, his work creates potential billings of $187,200. Of this amount, $156,300 has been billed by the end of the year. Collections during the year include all of the opening $23,800 of unbilled amounts, all of the $27,200 of opening uncollected billings, as well as $124,600 of the $156,300 of new work that was billed during the year. Assuming that Jonathan is using the billed basis of recognition, calculate his net business income inclusion for 2020.

Mr Jonathan Volke Is a Lawyer with a Medium Sized