The Cable TV Company, an accrual-basis taxpayer, allows its customers to pay by the month,...
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Accounting
The Cable TV Company, an accrual-basis taxpayer, allows its customers to pay by the month, by the year, or two years in advance. On December 1, 2020, the company collected the following amounts applicable to future services:
Jan 2021 services (monthly contracts) $10,000
Dec 2020 - Nov 2021 services (annual contracts) 48,000
Dec 2020 - Nov 2022 services (2-year contracts) 72,000
What is the amount of gross income that Cable TV Company must report for 2021?
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