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Norah's Music Lessons Inc. is a calendar year taxpayer using theaccrualmethod of accounting. On ...

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Norah's Music Lessons Inc. is a calendar year taxpayer using theaccrualmethod of accounting. On ...

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?

▸ $480

▸ $360

▸ $720

▸ $1,200

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Federal Taxation 2017 Individuals

Edition: 30^th

Authors: Pope, Rupert, Anderson

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