Speak Corporation,a calendar year accrual basis taxpayer,sells packages of foreign language lessons to individuals planning to work overseas.In December,2013,it sold and received payment for $600,000 of 24-month lesson packages to be provided evenly through 2014 and 2015.Speak Corporation will recognize the $600,000 of income

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Since Speak Corporation is an accrual basis taxpayer, revenue is recognized when earned. In this case, the revenue ($600,000) is earned evenly over the 24-month period the lessons are provided (2014 and 2015). Therefore, the income should be recognized equally over the 2-year period, resulting in $300,000 of income being recognized in 2014 and $300,000 of income being recognized in 2015. Therefore, the best choice is C - all in 2014.

Speak Corporation,a Calendar Year Accrual Basis Taxpayer,sells Packages of Foreign