Question
Right House Networks allows its customers to pay by the year in advance ($800), or two years in advance ($1500). In September 2020, the company
- Right House Networks allows its customers to pay by the year in advance ($800), or two years in advance ($1500). In September 2020, the company collected the following amounts for future services:
Oct. 2020- Sept 2022 (Two-year contracts) $150,000
Oct. 2020- Sept 2021 (One-year contracts) $ 64,000
Calculate the amount of the above that would be included in Right House Networks taxable income in 2020, 2021, and 2022, respectively assuming:
- Right House recognizes income on the cash basis.
b) Right House recognizes income on the accrual basis
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General Accounting Financial Accounting
Authors: Bbc Kikumbi Mwepu
1st Edition
6206329488, 978-6206329480
