Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year. 1.Under the cash method, how much was the deductible expense of Leomar in 2018? * 2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? * 3.Under the accrual method, how much was the income of Mike for 2018? * 4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year. 1.Under the cash method, how much was the deductible expense of Leomar in 2018? * 2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? * 3.Under the accrual method, how much was the income of Mike for 2018? * 4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 1CE
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Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year.
1.Under the cash method, how much was the deductible expense of Leomar in 2018? *
2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? *
3.Under the accrual method, how much was the income of Mike for 2018? *
4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
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