CT Computer Corporation, a Cash- Basis Taxpayer, Sells Service Contracts

question 903

Multiple Choice

CT Computer Corporation, a cash- basis taxpayer, sells service contracts on the computers it sells. At the beginni 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) $1,680.
• B) $5,000.
• C) $200.
• D) $1,000.

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Definitions:

Frederick Jackson Turner

An American historian known for his "Frontier Thesis," which argued that the American democracy was largely formed by the American frontier.

Western Frontier

The geographical area of the United States west of the Mississippi River during the 19th century, known for its exploration, settlement, and expansion.

John C. Frémont

An American explorer, military officer, and politician known for his role in the U.S. expansion and the Bear Flag Revolt during the Mexican-American War.

"The Pathfinder"

A novel by James Fenimore Cooper, part of the Leatherstocking Tales, or alternatively a nickname for John C. Frémont, an American explorer, military officer, and politician.