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Afina-wow [57]
3 years ago
6

The Green Company, an accrual basis taxpayer, provides businessconsulting services. Clients generally pay a retainer at the begi

nning of a 12-month period. This entitles the client to no more than 40 hours of services. Once the client has received 40 hours of services, Green charges $500 per hour. Green Company allocates the retainer to income based on the number of hours worked on the contract. At the end of the tax year, the company had $50,000 of unearned revenues from these contracts. The company also had $10,000 in unearned rent income received from excess office space leased to other companies. Based on the above, Green must include in gross income for the current year:
Business
1 answer:
Georgia [21]3 years ago
7 0

Answer:

10,000

Explanation:

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