On January 1, 2018, an Accrual Basis Taxpayer Entered into a Contract

question 101

True/False

On January 1, 2018, an accrual basis taxpayer entered into a contract to provide termite inspection service each month for 24 months. The amount received for the contract was $2,400. The taxpayer reported $1,200 as income on its financial statement for 2018, and should do the same for its tax return.

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Definitions:

Generalized Other

A combination of other people’s views that tells you who and what you are.

Social Role

refers to the set of behaviors, rights, obligations, and expectations associated with a particular social status or position in a group or society.

Increased Self-Awareness

A heightened state of being conscious of one's own character, feelings, motives, and desires.

Over-Justification Effect

The phenomenon where extrinsic rewards decrease a person's intrinsic motivation to perform a task because the action is seen as driven by the reward, not personal interest or enjoyment.