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Polly Is a Cash Basis Taxpayer with the Following Transactions

Question 10

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Polly is a cash basis taxpayer with the following transactions during the year:  Cash received from sales of products $90,000Cash paid for expenses (except rent and interest) $30,000Rent paid on a leased building for 24 months beginning December 1 $54,000Prepaid interest on abank loan, paid on December 1 , for the next 3 months $6,000Four months’ rent received on a leased building, on October 1 $8,000\begin{array}{llcc} \text { Cash received from sales of products } &\$90,000 \\ \text {Cash paid for expenses (except rent and interest) } &\$30,000\\ \text {Rent paid on a leased building for 24 months beginning December 1 } &\$54,000\\ \text {Prepaid interest on abank loan, paid on December 1 , for the next 3 months } &\$6,000\\ \text {Four months' rent received on a leased building, on October 1 } &\$8,000\\\end{array}
Calculate Polly's income from her business for this calendar year.  Polly is a cash basis taxpayer with the following transactions during the year:  \begin{array}{llcc}   \text { Cash received from sales of products } &\$90,000  \\  \text {Cash paid for expenses (except rent and interest)  } &\$30,000\\  \text {Rent paid on a leased building for 24 months beginning December 1  } &\$54,000\\  \text {Prepaid interest on abank loan, paid on December 1 , for the next 3 months  } &\$6,000\\  \text {Four months' rent received on a leased building, on October 1  } &\$8,000\\ \end{array}   Calculate Polly's income from her business for this calendar year.

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