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:

Factorial Analysis

A statistical method used to describe variability among observed variables in terms of fewer unobserved variables.

Carryover Effects

In experimental research, the impact that the sequence of treatments has on participant responses, where effects of prior treatments influence outcomes in subsequent periods.

Generalizable

Capable of being applied to different situations or contexts beyond the original study conditions or parameters.

Convergence of Data

The process where multiple pieces of data, often from different sources or methodologies, come together to support a cohesive conclusion or finding.