On December 1,2017,Daniel,an accrual basis taxpayer,collects $12,000 rent for December 2017 and $12,000 for January 2018.Daniel must include the $24,000 in 2017 gross income.

Question

Quizplus · Accepted Answer

According to the accrual basis of accounting, income is recognized when it is earned, regardless of when it is received. Since Daniel collected rent for both December 2017 and January 2018 in December 2017, he must include the entire $24,000 in his 2017 gross income.

On December 1,2017,Daniel,an Accrual Basis Taxpayer,collects $12,000 Rent for December