With Respect to Income from Services, Which of the Following

question 79

Multiple Choice

With respect to income from services, which of the following is true?

• A)An accrual basis taxpayer will always recognize the income over the period the services will be rendered.
• 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, 2019 for $3,600, the taxpayer's 2019 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1, 2019, one-half (12/24) the income is recognized in 2020.
• E)None of these.

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Definitions:

Control Group

In an experiment, the group that does not receive the experimental treatment.

Social Learning Theory

A theory that emphasizes the importance of observing, modelling, and imitating the behaviors, attitudes, and emotional reactions of others.

Laboratory Methods

Techniques and procedures used in controlled environments for scientific research or experimentation.

American Psychology

A branch of psychology focused on behavior and mental processes, emphasizing empirical evidence and practical applications, with roots in both European traditions and unique American innovations.