Steven operates a landscaping service on the accrual method. In September of this year Steven...
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Accounting
Steven operates a landscaping service on the accrual method. In September of this year Steven received a payment of $18,000 for 24 months of landscape services ($750 per month commencing on December 1st of this year). When must Steven recognize the income if his accounting methods are selected to minimize income recognition?
A.
$1,500 is recognized in this year, $16,500 next year
B.
$1,500 is recognized this year, $9,000 next year, and $7,500 in the last year of the contract
C.
$18,000 is recognized this year
D.
$9,000 is recognized this year and $9,000 next year
E.
$750 is recognized in this year and $17,250 next year
2-
In the current year, Wilson (who files as a head of household) reported regular taxable income of $152,000. He itemized his deductions, deducting $18,000 in charitable contributions and $2,000 in state income taxes. What is Wilson's alternative minimum taxable income?
A.
$164,000
B.
$154,000
C.
$152,000
D.
$172,000
E.
$170,000
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