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

question 22

Essay

Mike operates a fishing outfitter as an accrual-method sole proprietorship. On March 1st 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 minimizehis tax burden?

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Definitions:

Complementary Learning

Links between families, early childhood programs, schools, out-of-school-time programs and activities, higher education, health and social service agencies, businesses, libraries, museums, and other community-based organizations that work together to encourage consistent learning and developmental outcomes for children from birth to adolescence.

Scholarships

Financial support awarded to students based on various criteria such as academic achievement, talent, or needs, to help them further their education.

Low-income Families

Households earning below a specific threshold, making it difficult to meet expenses for basic needs.

Support Community

A group of people who provide emotional, informational, and practical support to each other around shared experiences or challenges.