Question 13

WeedGone Inc, an accrual basis, calendar year corporation, provides yard maintenance services to its customers. In April 2020, WeedGone contracted with Mr. Flower to provide monthly service calls for 36 months. Each service call costs $50, and Mr. Flower prepaid $1,000 when he signed the contract. WeedGone made four service calls to Mr. Flowers home in 2020, six service calls in 2021 and five service calls in 2022. As a result of the contract, WeedGone should report:

Group of answer choices

$200 taxable income in 2020, $800 taxable income in 2021.

$1,000 taxable income in 2020.

$200 taxable income in 2020, $300 taxable income in 2021 and $250 taxable income in 2022.

$200 taxable income in 2020, $300 taxable income in 2021 and $500 taxable income in 2022.