Gabe Corporation,an Accrual-Basis Taxpayer That Uses the Calendar Year as Its

question 1

Essay

Gabe Corporation,an accrual-basis taxpayer that uses the calendar year as its tax year,sells CPE (continuing professional education)courses under contracts ranging from three months to two years.Assume that Gabe Corporation sold three contracts on July 1,2014; one for six months costing $300; one for one year costing $500; and one for two years costing $800.
Required: What is the minimum amount of income that must be recognized in 2014 and 2015?

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Definitions:

Repetitive Thoughts

The process of thinking about the same thoughts over and over again, which can be a symptom of various mental health conditions.

Ritualized Behaviors

Actions performed in a prescribed manner that are often symbolic and may be part of religious or cultural practices.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, not limited to any specific situation or object.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and persistent concern about having more attacks.