On December 1,2014,Daniel,an Accrual Basis Taxpayer,collects $12,000 Rent for December

question 107

True/False

On December 1,2014,Daniel,an accrual basis taxpayer,collects $12,000 rent for December 2014 and $12,000 for January 2015.Daniel must include the $24,000 in 2014 gross income.

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Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries after the elimination of inter-company transactions, presented in consolidated financial statements.

Amortization

The practice of slowly allocating the initial expense of an intangible asset across its productive lifespan.

Dividends

Payments made by a corporation to its shareholder members, typically derived from the company's earnings.

Acquisition Allocations

The process of assigning the purchase price in a business combination to the various assets acquired and liabilities assumed based on their fair values.