The Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month, by the year, or two years in advance. In December 2015, the company collected the following amounts applicable to future services: Assuming Cable TV wants to minimize income reported for 2015, what is the amount of gross income that must be reported for 2015 and how much of the income from these contracts will be reported in 2016?

Question

The Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month, by the year, or two years in advance. In December 2015, the company collected the following amounts applicable to future services:  Assuming Cable TV wants to minimize income reported for 2015, what is the amount of gross income that must be reported for 2015 and how much of the income from these contracts will be reported in 2016?

Quizplus · Accepted Answer

The Answer of The Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month, by the year, or two years in advance. In December 2015, the company collected the following amounts applicable to future services:  Assuming Cable TV wants to minimize income reported for 2015, what is the amount of gross income that must be reported for 2015 and how much of the income from these contracts will be reported in 2016?

The Cable TV Company, an Accrual Basis Taxpayer, Allows Its