A corporation can use the installment sale method of accounting for both book and tax purposes.

Name: A corporation can use the installment sale method of accounting for both book and tax purposes.
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Question

Quizplus · Accepted Answer

The installment sale method is primarily used for tax purposes, allowing taxpayers to spread the recognition of income over the period payments are received. For book purposes, revenue is typically recognized when earned, not when payments are received.

A Corporation Can Use the Installment Sale Method of Accounting