With Respect to Income from Services,which of the Following Is

question 10

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 1,2015 for $3,600,the taxpayer's 2015 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1,2015,one-half (12/24) the income is recognized in 2016.
• E)None of these.

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Definitions:

Wage Attraction

The potential of an employer or a sector to draw employees by offering competitive or attractive wages.

Supply Plentiful

A market condition where there is an ample amount of goods or services available to meet consumer demand.

Market Wages

The prevailing pay rates for jobs in a given market, determined by supply and demand for labor in that market.

Wage Determination

The process through which wages for labor are set, involving factors like supply and demand, bargaining power, and government policies.