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

question 110

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 1,2010,for $2,400,the taxpayer's 2011 gross income from the contract is $1,800.
• D)If the accrual basis taxpayer sells a 12-month service contract on July 1,2010,all of the income is recognized in 2011.
• E)None of the above.

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Definitions:

Business Sales

The total receipts a company generates from selling its goods or services over a specific period of time.

Inheritance Laws

Legal rules and protocols that govern the distribution of an individual's estate upon their death.

Economic Equality

A state where all individuals in an economy have the same income and wealth levels, minimizing disparities.

Middle East

A region that broadly includes Western Asia and Egypt, known for its historical, cultural, and political significance as well as its natural resources like oil.