Problem 9-65 (LO 9-5) The following information applies to the questions display

Question

Problem 9-65 (LO 9-5) The following information applies to the questions displayed below In October of year 0, Janine received a $12,250 payment from a client for 35 months of security services she will provide starting on December 1 of year O. This amounts to $350 per month. Janine is a calendar-year taxpayer. Problem 9-65 Part-a a. When must Janine recognize the income from the $12,250 advance payment for services if she uses the cash method of accounting? O Year 2 OYear O O Year 1 Year 1 and year 2 O Year 0 and year 1

Explanation / Answer

A)under cash method ,income should be recognised in the year cash isreceived .so 12250 should be recognised in year 0

correct option is "b"

b)correct option is "B" year 0 and 1

In year 0 ,350 should bre recognised and remaining income should be recognised in year 1

c)correct optionis "B" - year 2

the entire income should be recognised in year 2 if jannie uses deferral method when the goods are actually delievered.

D)correct option is "E" -year0

the entire payment should be recognised in year 0in case of full inclusion method

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.