With Respect to Income from Services, Which of the Following

question 80

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, 2017 for $3,600, the taxpayer's 2017 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1, 2017, one-half (12/24) the income is recognized in 2018.
• E)None of these.

---

Definitions:

Group Work

Cooperative effort by members of a group to achieve a common goal, often used in educational and professional contexts.

Casework

A social work practice where individual cases are examined in detail to provide appropriate assistance and interventions.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.

Rehabilitation

The process of restoring someone to health or normal life through training and therapy after imprisonment, addiction, or illness.