Norah's Music Lessons Inc

question 7

Multiple Choice

Norah's Music Lessons Inc.is a calendar year taxpayer using the accrual method of accounting.On October 1 of this year,the corporation received $1,200 for a one-year contract beginning on that date to provide 10 lessons.The company provided 6 lessons this year under the contract.How much should corporation include in income this year with respect to this contract?

• A)$480
• B)$360
• C)$720
• D)$1,200

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Definitions:

Missing Details

Information or parts of a narrative that are not provided or omitted, which may be crucial for understanding the full context.

Clarify Expectations

The process of making sure all parties involved understand the requirements, goals, and responsibilities in a certain context.

First Instincts

The initial, intuitive response or reaction one has towards a situation or decision.

Critical Thinking Skills

The ability to think clearly and rationally about what to do or what to believe, including the ability to engage in reflective and independent thinking, and to question assumptions and evidence critically.