Final answer:
Under the cash method of accounting, Hank will include the entire $4,700 for consulting services in his income for the year if it was actually or constructively received during the year.
Step-by-step explanation:
The original question asks, how much of the $4,700 consulting services will Hank include in his income this year if he uses the cash method of accounting? Although the provided information about Singleton Bank lending $9 million to Hank's Auto Supply and the implications for First National's balance sheet is related to accounting and finance, it is not directly relevant to the question about Hank's consulting income under the cash method of accounting. To answer the question, under the cash method of accounting, a taxpayer includes all income in the fiscal period in which it is actually or constructively received.
Therefore, if Hank received the $4,700 for consulting services this fiscal year in cash, check, or another form of actual or constructive receipt, he will include the entire $4,700 in his income for the year. If the payment was not received this year, it should not be included in this year's income.