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Business, 06.11.2019 03:31 karebareyo
The green company, an accrual basis taxpayer, provides businessconsulting services. clients generally pay a retainer at the beginning of a 12-month period. this entitles the client to no more than 40 hours of services. once the client has received 40 hours of services, green charges $500 per hour. green company allocates the retainer to income based on the number of hours worked on the contract. at the end of the tax year, the company had $50,000 of unearned revenues from these contracts. the company also had $10,000 in unearned rent income received from excess office space leased to other companies. based on the above, green must include in gross income for the current year:
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The green company, an accrual basis taxpayer, provides businessconsulting services. clients generall...
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