CT Computer Corporation, an Accrual Basis Taxpayer, Sells Service Contracts

question 46

Multiple Choice

CT Computer Corporation, an accrual basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately: The amount of income CT Corporation must report for this year is

• A)$200.
• B)$1,000.
• C)$1,680.
• D)$5,000.

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Definitions:

La Piana Consulting

A consulting firm specializing in strategic solutions for nonprofits and foundations.

Cross-Sector Collaboration

Partnerships between organizations from different sectors (public, private, nonprofit) to address common challenges through shared resources and goals.

Nonprofit Organization

An organization dedicated to furthering a social cause or shared goal, without the primary aim of making a profit for shareholders or owners.

Public Organization

An organization established and funded by the government to serve the public interest and provide services not typically offered by private entities.