Ms.Marple's books and records for 2014 reflect the following information: What is the amount Ms.Marple should include in her gross income in 2014?
One of the requirements that must be met in order to defer recognition of income for advance payments for goods is
A)the taxpayer's method of accounting for the sale for tax purposes is the same as the method used for financial reporting purposes.
B)the goods are on the taxpayer's premises on the last day of the tax year.
C)the goods are produced in the United States.
D)the amount received is more than the taxpayer's cost of the goods.
Which of the following advance payments cannot qualify for income tax deferral?
A)advance collection for services
B)advance collection for merchandise
C)advance collection of rent without associated services
D)advance collection of rent with associated services
Norah's Music Lessons Inc.is a calendar year taxpayer using the accrual method of accounting. On October 1 of this year,the corporation received $1,200 for a one-year contract beginning on that date to provide 10 lessons.The company provided 6 lessons this year under the contract.How much should corporation include in income this year with respect to this contract?