With Respect to Income from Services, Which of the Following

question 39

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, 2012 for $3,600, the taxpayer's 2013 gross income from the contract is $3,000.
• D)If an accrual basis taxpayer sells a 12-month service contract on July 1, 2012, all of the income is recognized in 2012.
• E)None of the above.

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Definitions:

Immigrant Population

Refers to individuals who have moved to a new country from their place of origin, often for reasons such as economic opportunity, refuge, or family reunification.

Hinton Helper

An American Southern critic of slavery known for his book "The Impending Crisis of the South," advocating for the abolition of slavery on economic grounds.

Non-slaveholding Whites

White individuals in the antebellum South who did not own slaves, often economically and socially distinct from slaveholders.

The Impending Crisis

A reference to a period or situation leading up to a significant, often negative, event, possibly related to historical conflicts or economic downturns.