Chicago Cleaning Services provides nightly janitorial services at a monthly rate of $300.Customers have three payment options: If Chicago Cleaning is an accrual basis taxpayer:
I.All cash payments are taxable when they are received.
II.One-year advance payments must be included in income in the year they are received.
III.Two-year advance payments attributable to service in two years; hence,must be included in income in the year they are received.
IV.One-year advance payments may be deferred: $280 would be included in income for each month of service provided.

Question

Chicago Cleaning Services provides nightly janitorial services at a monthly rate of $300.Customers have three payment options:  If Chicago Cleaning is an accrual basis taxpayer:
I.All cash payments are taxable when they are received.
II.One-year advance payments must be included in income in the year they are received.
III.Two-year advance payments attributable to service in two years; hence,must be included in income in the year they are received.
IV.One-year advance payments may be deferred: $280 would be included in income for each month of service provided.
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Quizplus · Accepted Answer

The Answer of Chicago Cleaning Services provides nightly janitorial services at a monthly rate of $300.Customers have three payment options:  If Chicago Cleaning is an accrual basis taxpayer:
I.All cash payments are taxable when they are received.
II.One-year advance payments must be included in income in the year they are received.
III.Two-year advance payments attributable to service in two years; hence,must be included in income in the year they are received.
IV.One-year advance payments may be deferred: $280 would be included in income for each month of service provided.
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Chicago Cleaning Services Provides Nightly Janitorial Services at a Monthly