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Need help with the following Problem 4-32 (LO. 2, 5) Al...

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Accounting

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Problem 4-32 (LO. 2, 5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2018, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2017. At the end of 2018, Al had accounts receivable of $60,000, for services rendered in 2018. In addition, at the end of the year, A received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2019. Compute Al's gross income for 2018: a. Using the cash basis of accounting. 292,000 Feedback Check My Work The year an item of income is subject to tax often depends upon which acceptable accounting method the tax three primary methods of accounting are (1) the cash receipts and disbursements method, (2) the accrual m method. Most individuals use the cash receipts and disbursements method of accounting, whereas most large method. b. Using the accrual basis of accounting 260,000X

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