Item$17$

$0\mathrm{.}25$points

References

Item $17$

MC Qu$.17$ Steven operates a landscaping service on$...$

Steven operates a landscaping service on the accrual method. In September of this year, Steven received a payment of $$18,000$ for $24$ months of landscape services $($$$750$ per month commencing on November $1$st of this year$).$ When must Steven recognize the income if his accounting methods are selected to minimize income recognition?

Multiple Choice

$$1,500$ is recognized in this year, $$16,500$ next year.

$$1,500$ is recognized this year, $$9,000$ next year, and $$7,500$ in the last year of the contract.

$$18,000$ is recognized this year.

$$9,000$ is recognized this year and $$9,000$ next year.

$$18,000$ is recognized in the last year of the contract.