Cougar Inc. is a calendar year, accrual method C corporation. In December Cougar enters into a contract with XYZ pursuant to which Cougar pays XYZ $ and XYZ is required to renovate Cougars parking lot by the end of In May XYZ commences renovating the parking lot, and in July the renovation is completed.

When does economic performance occur? When can Cougar deduct the $ payment?

Cougar Inc. is a calendar year, accrual method C corporation. In December Cougar enters into a parking lot renovation contract with XYZ pursuant to which Cougar pays XYZ $ Cougar expects that the renovation will be completed by the end of February In January XYZ comments renovating the parking lot, and in February the renovation is completed.

When does economic performance occur? When can Cougar deduct the $ payment?

Answer rating: 100% (QA)

Under the accrual method of accounting economic performance occurs when the goods or service... View the full answer