For a Taxpayer Who Is Required to Use the Percentage

question 59

True/False

For a taxpayer who is required to use the percentage of completion method, the taxpayer can elect to defer the recognition of income and the related costs until the taxable year in which cumulative contract costs are at least 10 percent of the estimated contract costs.

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Definitions:

Polymer

A large molecule comprised of many repeated subunits, known as monomers, bonded together.

Reaction

A method where reactants transform into products possessing novel attributes.

Dacron

A synthetic polyester fiber known for its strength, durability, and resistance to stretching and shrinking.

Monomers

Simple molecules which can join together to form polymers through chemical reactions.