CT Computer Corporation,a Cash-Basis Taxpayer,sells Service Contracts on the Computers

question 90

Multiple Choice

CT Computer Corporation,a cash-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: $$\begin{array} { | l | r | } \hline \text { One for three months } & \$ 200 \\\hline \text { One for } 20 \text { months } & 800 \\\hline \text { One for } 48 \text { months } & 4,000 \\\hline\end{array}$$ The amount of income CT Corporation must report for this year is

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

---

Definitions:

Behavioral Expressions

The ways in which behaviors are outwardly shown and can be observed in the context of emotions, thoughts, and social interactions.

Conscious Feelings

Emotional experiences that are within one's immediate awareness.

Sympathetic Nervous system

A part of the autonomic nervous system that activates the body's responses under stress, such as increasing heart rate and redirecting blood flow.

Parasympathetic Nervous System

A component of the autonomic nervous system responsible for energy conservation by decreasing the heart rate, enhancing the activity of intestines and glands, and easing the muscles of sphincters in the digestive system.