With Respect to Income from Services,which of the Following Is

question 26

Multiple Choice

With respect to income from services,which of the following is true?

• A)The income is always amortized over the period the services will be rendered by an accrual basis taxpayer.
• B)A cash basis taxpayer can spread the income from a 24-month service contract over the contract period.
• C)If an accrual basis taxpayer sells a 36-month service contract on July 1,2013 for $3,600,the taxpayer's 2013 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1,2013,one-half (12/24)the income is recognized in 2014.
• E)None of the above.

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Definitions:

Free Association

A psychoanalytic process where a patient speaks freely to expose thoughts and feelings that are hidden in their unconscious.

Individuation

The process by which an individual becomes distinct and separate, psychologically or socially, often in terms of identity development.

Psyche

The human soul, mind, or spirit, often used to denote the psychological components of a person, including thoughts, feelings, and consciousness.

Capacities

Refers to the potential or ability to perform, yield, or withstand something; often used to describe an individual's mental or physical aptitude.