Mathematics, 27.09.2019 20:00 10040813
Orange cable tv company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year), or two years in advance ($960). in september 2018, the company collected the following amounts applicable to future services:
october 2018-september 2020 services (200 two-year contracts) $192,000
october 2018-september 2019 services (200 one-year contracts) 120,000
total $312,000
as a result of the above, orange cable should report as gross income for 2019:
a) $54,000
b) $78,000
c) $258,000
d) $312.000
Answers: 2
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Orange cable tv company, an accrual basis taxpayer, allows its customers to pay by the year in advan...
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