C Corp. is a large marketing firm. On Oct. 1, 2019, Client pays C Corp. $130,000...
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C Corp. is a large marketing firm. On Oct. 1, 2019, Client pays C Corp. $130,000 for 26 months' worth of consulting services ($5,000/month beginning Oct. 1, 2019). For financial accounting (book) purposes, C Corp. recognizes income of $15,000 in 2019, $60,000 in 2020 and $55,000 in 2021. For tax purposes, C Corp. elects to defer prepaid service income. For tax purposes, what amount of the $130,000 does C Corp. recognize in 2019? C Corp. is a large marketing firm. On Oct. 1, 2019, Client pays C Corp. $130,000 for 26 months' worth of consulting services ($5,000/month beginning Oct. 1, 2019). For financial accounting (book) purposes, C Corp. recognizes income of $15,000 in 2019, $60,000 in 2020 and $55,000 in 2021. For tax purposes, C Corp. elects to defer prepaid service income. For tax purposes, what amount of the $130,000 does C Corp. recognize in 2019?
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To determine the amount of the 130000 that C Corp recognizes in 2019 for tax pur... View the full answer
Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
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