Kathy, an accrual basis taxpayer, operates a gym. She sells memberships that entitle the ...
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Kathy, an accrual basis taxpayer, operates a gym. She sells memberships that entitle the member to use the facilities at any time. A oneyear membership costs per month; a twoyear membership costs $ $$ per month Cash payment is required at the beginning of the membership. On July Year Kathy sold a oneyear membership and a twoyear membership. Assume both customers started using the memberships on July Year Determine the amount of income Kathy recognizes in Year from the twoyear contract. 
Kathy, an accrual basis taxpayer, operates a gym. She sells memberships that entitle the
member to use the facilities at any time. A oneyear membership costs
per month; a twoyear membership costs $ $$ per month Cash payment is
required at the beginning of the membership. On July Year Kathy sold a oneyear
membership and a twoyear membership. Assume both customers started using the
memberships on July Year
Determine the amount of income Kathy recognizes in Year from the twoyear contract.
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