The Cable TV Company,an accrual-basis taxpayer,allows its customers to pay by the month,by the year,or two years in advance.In December 2017,the company collected the following amounts applicable to future services:
Assuming Cable TV wants to minimize income reported for 2016,what is the amount of gross income that must be reported for 2017 and how much of the income from these contracts will be reported in 2018?
Definitions:
Ganglion
A structure containing a number of nerve cell bodies, typically linked by synapses, and often forming a swelling on a nerve fibre.
Adrenal Gland
Small glands located on top of each kidney that produce hormones such as adrenaline and cortisol, which are essential for stress response and metabolism.
Hippocampus
A region of the brain that is associated with memory formation, organization, and retrieval.
Medulla
The inner region of an organ or tissue, especially the medulla oblongata which is a part of the brainstem controlling vital bodily functions.
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