Income from Some Long-Term Contracts Can Be Reported Using the Completed

question 84

True/False

Income from some long-term contracts can be reported using the completed contract method for regular income tax purposes, but the percentage of completion method is required for AMT purposes for all long-term contracts.

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Definitions:

Assurance

A formal declaration intended to give confidence or guarantee of certain outcomes or conditions.

Promise

An assurance that one will or will not do something in the future.

Unilateral Contract

A unilateral contract is a type of agreement in which an offer can only be accepted through performance, meaning one party promises to do something in return for the act of the other party.

Bilateral Contract

A type of contract involving two parties where each side promises to perform an act in exchange for the other party's act.