In 2021, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2021, and received payment in full of $12,000. Round any division to four decimal places. If required, round your final answer to the nearest dollar. How much gross income does Chaya report from these transactions in 2021? 1. From the services to clients: $fill in the blank 1 2. From the service contract: $fill in the blank 2
In 2021, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2021, and received payment in full of $12,000. Round any division to four decimal places. If required, round your final answer to the nearest dollar. How much gross income does Chaya report from these transactions in 2021? 1. From the services to clients: $fill in the blank 1 2. From the service contract: $fill in the blank 2
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 30CE
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In 2021, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of $22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2021, and received payment in full of $12,000.
Round any division to four decimal places. If required, round your final answer to the nearest dollar.
How much gross income does Chaya report from these transactions in 2021?
1. From the services to clients: $fill in the blank 1
2. From the service contract: $fill in the blank 2
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