Bill operates a proprietorship using the cash method of accounting, and this year he received the following payments:
• $100 in cash from a customer for services rendered this year
• a promise to pay $200 from a customer for services rendered this year
• tickets to a football game worth $250 as payment for services performed last year
• a check for $170 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?
A. $100
B. $300
C. $350
D. $270
E. $520
Answer: $520