Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in
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Question:
Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year). or two years in advance ($960). In September 2018, the company collected the following amounts applicable to future services:
October 2018-September 2020 services (200 two-year contracts) $192.000
October 2018-September 2019 services (200 one-year contracts) 120,000
Total $312.000
As a result of the above. Orange Cable should report as gross income for 2019:
- $ 54.000
- $ 78.000
- $ 258.000
- $ 312,000
Related Book For
South-Western Federal Taxation 2019 Comprehensive
ISBN: 9781337703017
42th edition
Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young
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