Speak Corporation,a calendar-year,accrual-basis taxpayer,sell packages of foreign langauge lessons to individuals planning to work overseas.In December 2017,it sold and received payment for $600,000 of 24-month lesson packages to be provided evenly through 2018 and 2019.Speak Corporation will recognize the $600,000 of income

Question

Quizplus · Accepted Answer

C)Accrual-basis taxpayers can defer recognition of payments for future services,but not beyond the year immediately following the year of receipt.

Speak Corporation,a Calendar-Year,accrual-Basis Taxpayer,sell Packages of Foreign Langauge Lessons to Individuals