CT Computer Corporation, an accrual basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately:
One for three months $200
One for 20 months 800
One for 48 months 4,000
The amount of income CT Corporation must report for this year is
A) $200.
B) $1,000.
C) $1,680.
D) $5,000.
Answer: C
Tax
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