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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