John Doe, Inc., an accrual basis corporation, sponsored a beauty pageant on December 29, 2015. The gross receipts amounted to $310,000. The following expenses were incurred and paid on the dates indicated below:
|
Date of Payment
|
Nature of Expenses
|
Amount
|
|
December 19, 2015
|
Rental of Arena
|
$26,000
|
|
December 30, 2015
|
Cost of goods sold
|
|
|
|
Souvenirs
|
62,000
|
|
|
Food
|
32,000
|
|
January 3, 2016
|
Performers
|
95,000
|
|
February 2, 2016
|
Cleaning of Arena
|
10,000
|
Because the arena was not scheduled to be used again until January 13, Janitorial Services, Inc., the company with which John Doe, Inc. contracted, did not perform the cleanup work until January 7-9, 2016. Calculate the next pageant for tax purposes for 2015.