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Question

Candice operates a business giving art lessons at her studio. On December 26, 2018, she collected $900 from

Robbie under a 3-year contract. The contract provided for 60 1-hour weekly lessons beginning December 31, 2018. During 2018, Candice gave Robbie 1 lesson. In 2019, Robbie received 19 lessons, 20 in 2020, and in 2021 he received the remaining 20 lessons. Candice uses a calendar tax year and the accrual method of accounting. She elects to defer the advance payments. When should she report the income from these lessons?

2018........ 2019....... 2020...... 2021

Group of answer choices



$0....... $900........$0.....$0


$15.... $885....... $0.....$0.


$15.... $285...... $300.....$300


$15.... $285.....$600.....$0

 

Top Answer

She will report the income from these lessons... View the full answer

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