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 2016,the company collected the following amounts applicable to future services:
Assuming Cable TV wants to minimize income reported for 2016,what is the amount of gross income that must be reported for 2016 and how much of the income from these contracts will be reported in 2017?

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 2016,the company collected the following amounts applicable to future services:
  Assuming Cable TV wants to minimize income reported for 2016,what is the amount of gross income that must be reported for 2016 and how much of the income from these contracts will be reported in 2017?

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 2016,the company collected the following amounts applicable to future services:
  Assuming Cable TV wants to minimize income reported for 2016,what is the amount of gross income that must be reported for 2016 and how much of the income from these contracts will be reported in 2017?

The Cable TV Company,an Accrual-Basis Taxpayer,allows Its Customers to Pay