Speak Corporation,a calendar year cash-basis taxpayer,sells packages of foreign language 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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As a cash-basis taxpayer, Speak Corporation recognizes income when it is received. Since the payment was received in December 2016, the entire $600,000 is recognized as income in 2016.

Speak Corporation,a Calendar Year Cash-Basis Taxpayer,sells Packages of Foreign Language