Dolphin Co.received $1,500 in fees during 2017,1/3 of which will be earned in 2018.The rest was earned when the amount was received.The company should report which of the following amounts as income in 2017?
A)$1,500
B)$500
C)$1,000
D)$0

Question

Quizplus · Accepted Answer

Only $1,000 should be reported as income in 2017. This is because only 2/3 of the fees earned ($1,000) were actually earned and received in 2017, while the other 1/3 will be earned in 2018.