A healthcare business that uses accrual accounting issues employee paychecks on January 10, 2012 that cover the 14-day work period December 25, 2011 through January 7, 2012. For federal income tax purposes, the employees should ____.

A. report half that paycheck as 2012 income
B. report all of that paycheck as 2012 income
C. report all of that paycheck as 2011 income
D. deduct the pay for the two federal holidays in that pay period


Answer: B

Health Professions

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