Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month, and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2021, Bigham sold the following customer contracts: Length of contract Total Proceeds 12 months $14,000 24 months $24,000 Determine the income to be recognized in 2021 and 2022. Length of Contract 2021 Income 2022 Income 12 months $fill in the blank 1 $fill in the blank 2 24 months $fill in the blank 3 $fill in the blank 4
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month, and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2021, Bigham sold the following customer contracts: Length of contract Total Proceeds 12 months $14,000 24 months $24,000 Determine the income to be recognized in 2021 and 2022. Length of Contract 2021 Income 2022 Income 12 months $fill in the blank 1 $fill in the blank 2 24 months $fill in the blank 3 $fill in the blank 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month, and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2021, Bigham sold the following customer contracts:
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Determine the income to be recognized in 2021 and 2022.
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