MC Qu. 17 Steven operates a landscaping service on...
Steven operates a landscaping service on the accrual method. In September of this year, Steven received a payment of $18,000 for 24 months of landscape services ($750 per month commencing on November 1st of this year). When must Steven recognize the income if his accounting methods are selected to minimize income recognition?
Multiple Choice
$18,000 is recognized in the last year of the contract.
$9,000 is recognized this year and $9,000 next year.
$1,500 is recognized this year, $9,000 next year, and $7,500 in the last year of the contract.
$18,000 is recognized this year.
$1,500 is recognized in this year, $16,500 next year.