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Accounting Assignment
Maroon 5, a calendar-year corporation, recently sold tickets ($40,000,000) for concerts scheduled in the United States for next year and the following year. For financial statement purposes, Maroon 5 will recognize the income from the ticket sales when it performs the concerts. For tax purposes, it uses the accrual method and would prefer to defer the income from the ticket sales until after the concerts are performed. This is the first time that it has sold tickets one or two years in advance. Michael Stipe has asked your advice.
REQUIRED: Write a memo to Michael explaining your findings and listing a minimum of 3 primary sources. The memo should be in correct format and addressed to the instructor of the course.
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