Calculate the next pageant for tax purposes

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John Doe, Inc., an accrual basis corporation, sponsored a beauty pageant on December 29, 2015. The gross receipts amounted to $310,000. The following expenses were incurred and paid on the dates indicated below:

Date of Payment

Nature of Expenses

Amount

December 19, 2015

Rental of Arena

$26,000

December 30, 2015

Cost of goods sold


 

Souvenirs

62,000

 

Food

32,000

January 3, 2016

Performers

95,000

February 2, 2016

Cleaning of Arena

10,000

Because the arena was not scheduled to be used again until January 13, Janitorial Services, Inc., the company with which John Doe, Inc. contracted, did not perform the cleanup work until January 7-9, 2016. Calculate the next pageant for tax purposes for 2015.

Reference no: EM131797013

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