CT Computer Corporation, a cash basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately: The amount of income CT Corporation must report for this year is

Question

CT Computer Corporation, a cash basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately:  The amount of income CT Corporation must report for this year is

Quizplus · Accepted Answer

A cash basis taxpayer must report the income in the year it is actually or constructively received.

CT Computer Corporation, a Cash Basis Taxpayer, Sells Service Contracts