On January 1, 2012, an Accrual Basis Taxpayer Entered into a Contract

question 124

True/False

On January 1, 2012, an accrual basis taxpayer entered into a contract to provide termite inspection service each month for 36 months.The amount received for the contract was $2,400. The taxpayer should report $1,600 of income in 2013.

---

Definitions:

Programming Languages

Formal languages comprising a set of instructions that produce various kinds of output, used in computer programming to implement algorithms.

Calendar Work Week

A view in calendar applications that shows only the days of the business week, typically Monday through Friday.

Own Categories

A feature in some applications that allows users to create custom categories for organizing items according to their own criteria.