Brandon Is the Operator and Owner of a Cleaning Service $\$ 3,000$

question 51

Multiple Choice

Brandon is the operator and owner of a cleaning service who uses the cash method of accounting. He receives the following payments on December 31, 2018, the last business day of his tax year:
?
$\$ 3,000$ - Checks received from customers for services rendered during November and December 2018. The checks are deposited in his bank account on January 4, 2019.
$\$ 4,000$ - Checks received from customers for services to be rendered during 2019 . The checks are received in the morning mail and deposited in his bank account on December 31, 2018.
$\$ 2,400$ - A check received from a customer for a service contract. The services under the contract are to be rendered over 24 months, beginning in January 2019. The customer met Brandon at a New Year's Eve party and gives Brandon the check at 11:30 p.m. The check is deposited in his bank account on January 4, 2019.
How much of the $9,400 collected by Brandon on December 31 must be included in his 2018 gross income?

• A)$2,400
• B)$3,000
• C)$5,400
• D)$7,000
• E)$9,400

---

Definitions:

Popular Distrust

The widespread lack of confidence or trust among the general population towards institutions, authorities, or established systems.

Johnson Administration

The executive era led by Lyndon B. Johnson, the 36th President of the United States, from 1963 to 1969, noted for its domestic reforms and Vietnam War policies.

Draft Inequities

Draft inequities refer to unfairness and disparities in the conscription processes, often highlighting socioeconomic, racial, or ethnic inequalities in who is selected for military service.

Red Guards

Youth militant groups that formed a significant part of the Chinese Cultural Revolution, known for their fierce loyalty to Chairman Mao.