Malo Inc. uses a fiscal year ending June 30. On May 29, Malo received a...
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Malo Inc. uses a fiscal year ending June 30. On May 29, Malo received a check for $3,900 from a business that leases parking spaces in Malo's parking garage. This payment was for the three-month period beginning June 1. On June 15, Malo sent an invoice for $5,500 to a customer for services rendered during May and June. Malo received payment from the customer on July 3. a. If Malo is a cash basis taxpayer, how much income should it recognize from the given transactions in the current fiscal year? b. If Malo is an accrual basis taxpayer, how much income should it recognize from the given transactions in the current fiscal year? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B If Malo is an accrual basis taxpayer, how much income should it recognize from the given transactions in the current fiscal year? Services performed Prepaid rent income 1,300 s 6,8003
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