Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1st of this year, Mike received $16

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1st of this year, Mike received $16

Post by answerhappygod »

Mike operates a fishing outfitter as an accrual-method sole
proprietorship. On March 1st of this year, Mike received $16,500
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.
Required:
How much income must Mike recognize in each of the next five
years if he is attempting to minimize his tax burden?
I see that are two different answer about this case. I wnat
to Know what is the correct one.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply