Since the coliseum was not scheduled to be used again until

Reference no: EM13597000

Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2011. Gross receipts were $300,000. The following expenses were incurred and paid as indicated:

Expenses Payment Date
Rental of coliseum $25000 December 21, 2011

Cost of goods sold:

Food $30000 December 30, 2011
Souvenirs $60000 December 30, 2011
Performers $100000 January 5, 2012
Cleaning of coliseum $10000 February 1, 2012

Since the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not actually perform the cleanup until January 8-10, 2012.

Calculate Duck's net income from the concert for tax purposes for 2011.

Reference no: EM13597000

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