Problem:
Maggie is a cash method taxpayer. In 2014, Maggie received salary of $88,000 and in mid-December, her employer announced that Maggie would receive an additional year-end bonus of $10,000 in cash and a new TV worth $2,000. Maggie did not receive her bonus check until January 2015 and the TV did not arrive until March 2015.
Required:
Question: Determine the amount Maggie should include in her gross income for 2014.
Note: Be sure to show how you arrived at your answer.