Has Dr. Payne correctly calculated the gross income of his dental practice in its first year of operations? Is there an alternative method of accounting that would result in less taxable income in this first year?
In 2022, Dr. Cliff Payne, age 27, opened his dental practice as a sole proprietorship with a December 31 year-end. By the beginning of February, construction on his medical building was completed. He also leased a separate office building and entered into a contract to make improvements to it. In addition, early in the year, […]