T Corporation, an accrual basis, calendar year, taxpayer provides services to customers. Services are pertomved...
60.1K
Verified Solution
Link Copied!
Question
Accounting
T Corporation, an accrual basis, calendar year, taxpayer provides services to customers. Services are pertomved ratably (meaning equally) over the course of the year. In 2022. T sold one 12 month, one 24 month and one 36-month contract (i.e. services to be provided over the life of the contract) for which T was pre-paid, and one 48 -month contract which was purchased on credit (not paid for immediately). Each contract was \$2,000 per month, and T began services on July 1 of 2022. Meaning T received 24.000 for the 12 -month contract, $48.000 for the 24-month contract, and $72,000 for the 36-month contract on July 1 of 2022, and received $2,000 of the first day of each month. for 48 months, for the 48 -month contract. On May 1 of 2024 . T realized that the purchaser of the 48 -month contract (who had not made any payments), was broke, and would not make any payments ever. a. How much income , and or deducrion if any, does T recognice in 2022? b. How much income and or deduction if any, does Trecognize in 2023? c. How much income , and or deduction. if any, does T recognize in 2024
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
