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28. T Corporation, an accrual basis, calendar year, taxpayer provides services to customers. Services are performed ratably (meaning equally) over the course of the year. In 2022, T sold one 12 month, one 24 month and one 36-month contract (i.e. services to be provided over the life of the contract) for which T was pre-paid, and one 48-month contract which was purchased on credit (not paid for immediately). Each contract was $2,000 per month, and T began services on July 1 of 2022. Meaning T received 24,000 for the 12-month contract, $48,000 for the 24-month contract, and $72,000 for the 36-month contract on July 1 of 2022, and received $2,000 of the first day of each month, for 48 months, for the 48-month contract. On May 1 of 2024, T realized that the purchaser of the 48-month contract (who had not made any payments), was broke, and would not make any payments ever. a. How much income b. How much income c. How much income 42,000, and or deduction 24,000, and or deduction 22,000 if any, does T recognize in 2022? if any, does T recognize in 2023? if any, does I recognize in 2024? and or deduction. 22,000

28. T Corporation, an accrual basis, calendar year, taxpayer provides services to customers. Services are performed ratably (meaning equally) over the course of the year. In 2022, T sold one 12 month, one 24 month and one 36 -month contract (i.e. services to be provided over the life of the contract) for which T was pre-paid, and one 48 -month contract which was purchased on credit (not paid for immediately). Each contract was $2,000 per month, and T began services on July 1 of 2022. Meaning T received 24,000 for the 12 -month contract. $48,000 for the 24-month contract, and $72,000 for the 36-month contract on July 1 of 2022, and received $2,000 of the first day of each month. for 48 months, for the 48 -month contract. On May 1 of 2024. T realized that the purchaser of the 48 -month contract (who had not made any payments), was broke, and would not make any payments ever. a. How much income 42,00024,000 and or deduction b. How much income 42,000 c. How much income and or deduction if any, does Trecognize in 2022? , and or dediction. 22,000 - if any, does T recognize in 2023? - If an: does T recognize in 2024

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