Gabe Corporation,an Accrual-Basis Taxpayer That Uses the Calendar Year as Its

question 81

Essay

Gabe Corporation,an accrual-basis taxpayer that uses the calendar year as its tax year,sells CPE (continuing professional education)courses under contracts ranging from three months to two years.Assume that Gabe Corporation sold three contracts on July 1,2017; one for six months costing $300; one for one year costing $500; and one for two years costing $800.
Required: What is the minimum amount of income that must be recognized in 2017 and 2018?

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Definitions:

Brightness And Contrast

Settings that adjust the lightness (brightness) and the difference between the darkest and brightest parts (contrast) of an image or display to improve visibility and detail.

Photo Album

A collection of photographs stored digitally or in a physical book, organized in a specific order for viewing.

Add Captions

Inserting descriptive text or annotations into multimedia elements like images and videos for explanation or emphasis purposes.

Convert Pictures

A process or feature that changes the format of an image file from one type to another.