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  3. which of the following is the most likely situatio

Which of the following is the most likely situation that revenues or gains become taxable...

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Accounting

Which of the following is the most likely situation that revenues or gains become taxable after they are recognized in financial income?

A. subscriptions received in advance

B. prepaid royalty received in advance

C. an installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes

D. interest revenue for municipal bond investment is recognized for financial reporting purpose, but is not taxable for tax purpose

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