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

question 104

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 24-month service contract over the contract period.
• C)If an accrual basis taxpayer sells a 36-month service contract on July 1,2016 for $3,600,the taxpayer's 2016 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1,2016,one-half (12/24)the income is recognized in 2017.
• E)None of these.

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Definitions:

Co-optation

A strategy by which a group assimilates or takes over elements of another, often to neutralize or gain support.

Mass Movements

Large groups of people engaging collectively in political, social, or cultural campaigns to bring about or resist change in society.

Offers of Reforms

Proposals or pledges to make changes or improvements, typically in political, social, or economic systems.

Compounded Semiannually

Interest on an investment that is calculated twice a year and added to the principal sum.