6. (CPA) C is a commercial photographer who reports income on the cash basis. So
ID: 2417261 • Letter: 6
Question
6. (CPA) C is a commercial photographer who reports income on the cash basis. Some of his current year transactions follow:
Cash fees received for photo $55,000
Golf clubs won at his church raffle (FMV) 300
Loss on sale of his old golf clubs (100)
Appreciation on investment property 1,000
What is C’s gross income?
a. $55,000 b. $55,900 c. $55,300 d. $55,200
Explanation / Answer
d. $55,200