With Respect to Income from Services,which of the Following Is

question 72

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 12-month service contract over the contract period.
• C) If an accrual basis taxpayer sells a 24-month service contract on July 1, 2011, for $2,400, the taxpayer's 2012 gross income from the contract is $1,800.
• D) If the accrual basis taxpayer sells a 12-month service contract on July 1, 2011, all of the income is recognized in 2012.
• E) None of the above.

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Definitions:

Cerebellum

A region of the brain that plays an important role in motor control, and also contributes to coordination, precision, and timing of movements.

Electrical Impulses

These are rapid, short signals that travel along the nerves, allowing for communication throughout the body.

Ethnicity

Social groups with a shared culture, ancestry, language, or national origin.

State of Health

A description of an individual's overall health and well-being, considering physical, mental, and emotional aspects.