Orange Cable TV Company, an Accrual Basis Taxpayer, Allows Its

question 53

Short Answer

Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance $600 per year), or two years in advance $960).In September 2018, the company collected the following amounts applicable to future services:
As a result of the above, Orange Cable should report as gross income for 2019:
A) $54,000.
B) $78,000.
C) $258,000.
D) $312,000.
E) None of these.

• A) $54,000.
• B) $78,000.
• C) $258,000.
• D) $312,000.
• E) None of these.

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Definitions:

Public Employees

Individuals employed by government entities at the federal, state, or local level.

Vital Services

Essential services that are critical to maintaining the health, safety, and welfare of the public, such as water, electricity, and medical care.

Union Representatives

Individuals elected or appointed to act on behalf of members of a labor union, negotiating labor contracts and addressing grievances with employers.

Labor Unions

Labor unions are organized groups of workers who unite to negotiate collectively with employers over wages, benefits, working conditions, and other labor-related issues.