An Advance Payment Received in June 2018 by an Accrual

question 100

True/False

An advance payment received in June 2018 by an accrual basis and calendar year taxpayer for services to be provided over a 36-month period can be spread over four tax years.

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Definitions:

Specialized

Adapted or suited for a specific purpose or function.

Nauplius Larva

A nauplius larva is the first larval stage of many crustaceans, characterized by its simple structure and three pairs of appendages.

Crustaceans

Members of a subphylum that includes lobsters, crabs, shrimp, barnacles, and their relatives.

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system; includes starfish, sea urchins, and sea cucumbers.