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12 April, 14:23

Alayna is a voice and singing coach. She is a calendar-year taxpayer using the accrual method of accounting. On November 2, 2018, she received $3,200 for a 2-year contract for 64 one-hour voice and singing lessons beginning on that date. The contract provided that Alayna give 8 lessons in 2018 and 48 lessons in 2019, with the remaining lessons to be given in 2020. What is the amount that Alayna should report on her 2019 return? a. $0b. $3,200c. $2,400d. $2,800

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  1. 12 April, 14:29
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    She should report $2400.00

    Explanation:

    She has a contract for 64 hours and she gets $3200.00 Just by aritmethics, this is doing a division we can find that she gets $50.00 for every hour, therefore if she gives 48 hours in 2019 we multiply $50.00 for 48 hours and we get $2,400.00
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