Cyrus Is a Cash Method Taxpayer Who Reports on a Calendar-Year.Last

question 104

Essay

Cyrus is a cash method taxpayer who reports on a calendar-year.Last year Cyrus received salary of $88,000 and at year-end his employer announced that Cyrus would receive an additional year-end bonus of $10,000 in cash and a new TV worth $2,000.Cyrus didn't receive his bonus check until January of this year and the TV didn't arrive until March of this year.Determine the amount Cyrus should include in his gross income for last year.

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Definitions:

Federal Government Revenues

The income received by the federal government from various sources, such as taxes, fees, and investments.

Individual Income Tax

A tax levied on the income of individuals, including wages, salaries, and investment returns.

Clothing Tax

A specific tax imposed on the sale or purchase of clothing, which can vary by jurisdiction.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax.