Uses the calendar year and the accrual method of accounting

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Reference no: EM131222567

1. To be considered alimony, the payments must meet certain conditions. Which of the following is not one of the conditions?

Payments must stop when the recipient dies

Payments are not for child support

The two parties may not live in the same household

Payments may be in cash or property

None of the above

2. Joyce is self-employed and uses the calendar year and the accrual method of accounting. She reports the following activities for December:

Received $10,000 from clients for services to be performed next year

Received $30,000 for services performed in December

Reports $15,000 in accounts receivable for work performed in December

Received $2,000 for services performed in November

3. What amount must Joyce include in gross income for December?

$45,000

$47,000

$55,000

$57,000

None of the above

Reference no: EM131222567

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