The Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month, by the year, or two years in advance. In December 2014, the company collected the following amounts applicable to future services:
Assuming Cable TV wants to minimize income reported for 2014, what is the amount of gross income that must be reported for 2014 and how much of the income from these contracts will be reported in 2015?
Definitions:
Misinformation
False or inaccurate information, often spread unintentionally, that can mislead people.
False News
Information that is deliberately misleading or fabricated and presented as genuine news.
Random Sequences
Sequences of numbers or events where each member has an equal probability of occurring and the occurrence of each member is independent of the others.
Placebo Effect
A beneficial effect, produced by a placebo drug or treatment, that cannot be attributed to the properties of the placebo itself, and must therefore be due to the patient's belief in that treatment.
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