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

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Chemicals or compounds employed in chemical processes to identify, quantify, analyze, or create additional substances.

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