David purchased a deli shop on February 1ˢᵗ of last year and began to operate it as a sole proprietorship.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:
$$\begin{array} { l r r }
& \text { Receipts } & \text { Expenses } \
\text { February thri. Decermber lastyear } & \$ 112,000 & \$ 84,500 \
\text { Jarnury this year } & 10,400 & 6,200
\end{array}$$ 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 sole proprietorship.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:
 $$\begin{array} { l r r } 
& \text { Receipts } & \text { Expenses } \
\text { February thri. Decermber lastyear } & \$ 112,000 & \$ 84,500 \
\text { Jarnury this year } & 10,400 & 6,200
\end{array}$$ 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 sole proprietorship.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:
 $$\begin{array} { l r r } 
& \text { Receipts } & \text { Expenses } \
\text { February thri. Decermber lastyear } & \$ 112,000 & \$ 84,500 \
\text { Jarnury this year } & 10,400 & 6,200
\end{array}$$ What income should David report from his sole proprietorship?

David Purchased a Deli Shop on February 1ˢᵗ of Last