Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1st of this year, Mike received $16
Posted: Mon Apr 25, 2022 7:59 am
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.
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.