Norah, who gives music lessons, is a calendar-year taxpayer using the cash-basis method of accounting. On October 1 of this year, she received $1,200 for a one-year contract beginning on that date to provide 10 lessons. She gave 6 lessons this year. How much should Norah include in income this year?

A) $480
B) $360
C) $720
D) $1,200


D) $1,200

As a cash-basis taxpayer, she will recognize the income in the year received.

Business

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