How are these advances treated for income tax purposes

Assignment Help Taxation

Reference no: EM133335621

Assignment:

A business may receive advances for goods or services to be delivered or services to be provided in a subsequent taxation year. How are these advances treated for income tax purposes?

a. included in income when the goods or services are delivered, or the services provided

b. included in income no later than 180 days after the end of the taxation year.

c. allocated to income over the period between the time the cash is received and the time the goods and services are delivered, or services are provided.

d. included in income in the taxation year in which the advance is received.

Reference no: EM133335621

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