Question: for 2020 for the 24 months the $6000 is wrong and also $12000 is wrong when that shoukdve been the right answer so im kinda
for 2020 for the 24 months the $6000 is wrong and also $12000 is wrong when that shoukdve been the right answer so im kinda stuck.
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2019, Bigham sold the following customer contracts: Length of contract 12 months Total Proceeds $14,000 $24,000 24 months Determine the income to be recognized in taxable income in 2019 and 2020. 2019 Income 2020 Income Length of Contract 12 months 7,000 7,000 24 months 6,000 6,000
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