Question

# Pink, Inc., an accrual basis taxpayer, owns an amusement park whose fiscal year ends September 30....

Pink, Inc., an accrual basis taxpayer, owns an amusement park whose fiscal year ends September 30. To increase business during the fall and winter months, Pink sold passes that would allow the holder to ride “free” during the months of October through March. During the month of September, \$6,000 was collected from the sale of passes for the upcoming fall and winter. When will the \$6,000 be taxable to Pink?

Solution:

Given data,

Pink, Inc., an accrual basis taxpayer, owns an amusement park whose fiscal year ends September 30. To increase business during the fall and winter months, Pink sold passes that would allow the holder to ride “free” during the months of October through March. During the month of September, \$6,000 was collected from the sale of passes for the upcoming fall and winter. When will the \$6,000 be taxable to Pink?

From the given data we need to find the When will the \$6,000 be taxable to Pink?

Calculation:

 Current year NIL Next year \$6,000 \$6,000

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