Speak Corporation,a calendar year accrual-basis taxpayer,sell packages of foreign langauge lessons to individuals planning to work overseas.In December 2016,it sold and received payment for $600,000 of 24-month lesson packages to be provided evenly through 2017 and 2018.Speak Corporation will recognize the $600,000 of income

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The revenue should be recognized in the year when the services are rendered, which in this case will be evenly spread over 2017 and 2018. Therefore, the $600,000 of income should be recognized in full in 2017. Option A is incorrect because the revenue will not be fully earned in 2016. Option B is incorrect because the revenue will not be evenly spread over 2017 and 2018. Option D is incorrect because the revenue will be fully earned in 2017 and 2018, and therefore should not be recognized fully in 2018.

Speak Corporation,a Calendar Year Accrual-Basis Taxpayer,sell Packages of Foreign Langauge