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Mike Operates a Fishing Outfitter as an Accrual-Method Sole Proprietorship

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Essay

Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1 st of this year, Mike received $15,000 for three outfitting trips. This is the first time Mike agreed to such a payment and he is obligated to outfit one trip per year for the next three summers, beginning this year. How much income must Mike recognize in each of the next three years if he is attempting to minimize his tax burden?


Definitions:

Eating Habits

The patterns, behaviors, and routines associated with food consumption in an individual or group.

Pantry

A small room or closet where food, dishes, and utensils are kept.

Coffeepot

A container or device for brewing coffee, typically with a spout and handle.

Frame of Reference

A set of criteria or stated values in relation to which measurements or judgments can be made.

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