Norah's Music Lessons Inc

question 1046

Multiple Choice

Norah's Music Lessons Inc. is a calendar- year taxpayer using the accrual method of accounting. On October 1 of this year, the corporation received $1,200 for a one- year contract beginning on that date to provide 10 lessons. The company provided 6 lessons this year under the contract. How much should the corporation include in income this year with respect to this contract?

• A) $1,200
• B) $360
• C) $480
• D) $720

---

Definitions:

Natural Substance

refers to any product or material found in nature, not artificially produced, often used in context with foods, medicines, and other products.

Hypnagogic Imagery

Vivid visual phenomena that occur during the onset of sleep.

Stage 1

The initial phase in a series of stages, often indicating the starting point of development, processes, or classifications.

REM Sleep

A stage of sleep characterized by rapid eye movement, increased brain activity, and vivid dreaming. It's essential for emotional regulation and memory consolidation.