Question - Polly is a cash basis taxpayer with the following transactions during the year:
Cash received from sales of products $85,000
Cash paid for expenses (except rent and interest) $30,000
Rent paid on a leased building for 18 months beginning December 1 $54,000
Prepaid interest on a bank loan, paid on December 1, for the next 3 months $ 6,000
Four months' rent received on a leased building, on October 1 $ 8,000
Calculate Polly's income from her business for this calendar year.