Teal Company Is an Accrual Basis Taxpayer

question 47

Multiple Choice

Teal company is an accrual basis taxpayer. On December 1, 2017, a customer paid for an item that was on hand, but the customer wanted the item delivered in early January 2018. Teal delivered the item on January 4, 2018. Teal included the sale in its 2017 income for financial accounting purposes.

• A)Teal must recognize the income in 2017.
• B)Teal must recognize the income in the year title to the goods passed to the customer, as determined under the state laws in which the store is located.
• C)Teal can elect to recognize the income in either 2017 or 2018.
• D)Teal must recognize the income in 2018.
• E)None of these.

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Definitions:

Hypercoagulability

An increased tendency for the blood to clot, which can elevate the risk of thrombosis or other cardiovascular problems.

Deep Vein Thrombosis

A medical condition characterized by the formation of a blood clot within a deep vein, typically in the legs, which can lead to serious complications if left untreated.

Hypercoagulability

An increased tendency of the blood to clot, which can lead to thrombosis (blood clots) in veins or arteries.

Venous Wall Damage

Injury or degradation to the walls of veins, which can lead to conditions such as varicose veins or chronic venous insufficiency.