Dolphin Co.received $1,500 in fees during 2014,1/3 of which will be earned in 2015,the rest was earned when the amount was received.The company should report which of the following amounts as income in 2014?
A)$1,500.
B)$500.
C)$1,000.
D)$0.

Question

Quizplus · Accepted Answer

Since only 1/3 of the fees ($500) will be earned in 2015, the rest ($1,000) was earned in 2014 when the amount was received. Therefore, Dolphin Co. should report $1,000 as income in 2014.