Becky Is a Cash Basis Taxpayer with the Following Transactions

question 9

Multiple Choice

Becky is a cash basis taxpayer with the following transactions during her calendar tax year: $\begin{array}{l}\text { Cash basis revenue}&\$ 54,000\\\text {Cash basis expenses, except rent }& \$ 25,000\\\text { Rent expense (paid on December } 1 \text { ) for use of a building for } 18 \text { months }&\$36,000\end{array}$
What is the amount of Becky's taxable income from her business for this tax year?

• A)$17,000
• B)$23,000
• C)$25,000
• D)$27,000
• E)None of the above

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