Reference no: EM132855950

Dr. Payne Phull is a cash basis taxpayer. Normally, his patients pay his fee on the day they see him in the office. For some customers, his office processes a medical reimbursement claim and bills the insurance company for the visit. In the current year, his records reveal the following:

Cash received at time of office visit ............................................................... $70,000

Collections on insurance receivables ................................................................ 88,000

Total accounts receivable, January 1 ................................................................... 5,000

Total accounts receivable, December 31 ......................................................... 15,000

Problem 1: All of the receivables outstanding at the beginning of the year were collected during the year. What amount should Dr. Phull report as his income this year?

Group of answer choices

A. $70,000

B. $158,000

C. $168,000

D. $173,000