1. Copier Choice Corporation (CCC) is a calendar-year, accrual method, C Corporation engaged in the business...

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1. Copier Choice Corporation (CCC) is a calendar-year, accrual method, C Corporation engaged in the business of selling, leasing, and servicing copiers primarily to service businesses such as accounting and law firms. During the fourth quarter of 2019, CCC received the following two payments: • Service payment CCC received in full a $375,000 fee for a 15-month service contract on 375 copiers sold by CCC in October of 2019 to a national law firm. Under the terms of the contract, CCC will provide all routine maintenance and service work on the copiers sold to the national law firm from November 1, 2019 through January 31, 2021. ● Rent payment CCC received a $150,000 of advance rental payment from a national accounting firm in December of 2019 on copiers it rents to the national accounting firm. The advance rent payment is for the first quarter of 2020. Under the terms of the contract, CCC requires the national accounting firm to prepay one quarter (3 months) of rent. Answer the question a. What amount of service income should CCC report in 2019, 2020, and 2021 on its financial income statements (GAAP) from the fourth quarter payment? Please show your work and explain your calculations. (2 points) b. What amount of service income should CCC report in 2019, 2020, and 2021 on its federal tax return from the fourth quarter payment? Please show your work and explain your calculations. (2 points) c. What amount of rent income should CCC report in 2019 and 2020 on its financial income statements (GAAP) from the fourth quarter payment? Please show your work and explain your calculations. d. What amount of rent income should CCC report in 2019 and 2020 on its federal tax return from the fourth quarter payment? Please show your work and explain your calculations 1. Copier Choice Corporation (CCC) is a calendar-year, accrual method, C Corporation engaged in the business of selling, leasing, and servicing copiers primarily to service businesses such as accounting and law firms. During the fourth quarter of 2019, CCC received the following two payments: • Service payment CCC received in full a $375,000 fee for a 15-month service contract on 375 copiers sold by CCC in October of 2019 to a national law firm. Under the terms of the contract, CCC will provide all routine maintenance and service work on the copiers sold to the national law firm from November 1, 2019 through January 31, 2021. ● Rent payment CCC received a $150,000 of advance rental payment from a national accounting firm in December of 2019 on copiers it rents to the national accounting firm. The advance rent payment is for the first quarter of 2020. Under the terms of the contract, CCC requires the national accounting firm to prepay one quarter (3 months) of rent. Answer the question a. What amount of service income should CCC report in 2019, 2020, and 2021 on its financial income statements (GAAP) from the fourth quarter payment? Please show your work and explain your calculations. (2 points) b. What amount of service income should CCC report in 2019, 2020, and 2021 on its federal tax return from the fourth quarter payment? Please show your work and explain your calculations. (2 points) c. What amount of rent income should CCC report in 2019 and 2020 on its financial income statements (GAAP) from the fourth quarter payment? Please show your work and explain your calculations. d. What amount of rent income should CCC report in 2019 and 2020 on its federal tax return from the fourth quarter payment? Please show your work and explain your calculations

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Part A Copier Choice Corporation CCC is a CalendarYear accrual method firm Service payment amounting ... View the full answer