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Required information [The following information applies to the questions displayed below.) Brown Thumb Landscaping is a calendar-year, accrual-method taxpayer. In September, Brown Thumb negotiated
Required information [The following information applies to the questions displayed below.) Brown Thumb Landscaping is a calendar-year, accrual-method taxpayer. In September, Brown Thumb negotiated a $14,000 contract for services it would provide to the city in November of the current year. The contract specifies that Brown Thumb will receive $4,000 in October as a down payment for these services, and it will receive the remaining $10,000 in January of next year. a. How much income from this $14,000 contract will Brown Thumb recognize in the current year? Recognized income
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