Contract method for reporting profit on long-term contracts

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Reference no: EM131893249

1. Certain taxpayers have the option of using either the percentage of completion method or completed contract method for reporting profit on long-term contracts. What impact could the AMT have on this decision? Indicate the sources of your opinion.

2. The spot price of a three year zero coupon bond is 0.8950 and the forward price of a one-year zero-coupon bond beginning in three years is 0.9350.

What is the four-year spot rate.

Reference no: EM131893249

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