In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000.
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In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2019, and received payment in full of $12,000. How much gross income does Chaya report from these transactions in 2019?
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Under the accrual method an item is generally included in gross income for the year in which it ...View the full answer
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Related Book For 
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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