With respect to unearned income from services, which of the following is true? None of the above
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Question:
With respect to unearned income from services, which of the following is true?
None of the above | ||
If a cash basis taxpayer sells a 36-month service contract on July 1, 2020, for $3,600, the taxpayer’s 2021 gross income from the contract is $1,200 | ||
On a cash basis taxpayer can spread the income from a 24-month service contract over the contract period | ||
If an accrual basis taxpayer sells a 24-month service contract on July 1, 2020, one-half (12/24) of the income is recognized in 2021 | ||
On an accrual basis, the taxpayer will always recognize the income over the period the services will be rendered |
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
Posted Date: