Business, 24.03.2021 21:40 leahstubbs
In October of year 0, Janine received a $22,475 payment from a client for 31 months of security services she will provide starting on September 1 of year 0. This amounts to $725 per month. Janine is a calendar-year taxpayer.
a. When must Janine recognize the income from the $22,475 advance payment for services if she uses the cash method of accounting?
Year 1
Year 2
Year 0
Year 1 and year 2
Year 0 and year 1
b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?
Year 0 and Year 1
Year 0
Year 1
Year 1 and Year 2
Year 2
Answers: 1
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In October of year 0, Janine received a $22,475 payment from a client for 31 months of security serv...
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