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Question: 1 on april 1 2014 a calendar year cash basis...

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1. On April 1, 2014, a calendar year, cash basis taxpayer purchased a bank CD for $6000 that matures on March 31, 2016 and will pay 6,618 thus yielding a 5% annual return. How much interest income report on her

a) 2014 tax return b) 2015 tax return c) 2016 tax return

2. On Sept. 30, 2014, a calendar year accrual basis (fitness club) taxpayer sold 24 month gym membership to a client at $75 a month, all ($1,800) payable in advance. The membership starts on October 1, 2014 and runs through September of 2016. How much income will the taxpayer report for:

a) 2014 b) 2015 c) 2016

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