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

question 104

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 1,2016 for $3,600,the taxpayer's 2016 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1,2016,one-half (12/24)the income is recognized in 2017.
• E)None of these.

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Definitions:

Negligent Performance

Failure to act with the competence or care that is expected in a given professional role, leading to harm or damage.

Duty of Care

Duty of care is a legal obligation that requires individuals or organizations to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Land Title

A legal document or evidence that proves ownership of a piece of land.