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Business, 15.07.2021 23:30 daniecott

Teal company is an accrual basis taxpayer. On December 1, 2020, a customer paid for an item that was on hand, but the customer wanted the item delivered in early January 2021. Teal delivered the item on January 4, 2021. Teal properly included the sale in its 2020 income for financial accounting purposes. a. Teal can elect to recognize the sale in its gross income in either 2020 or 2021. b. Teal must recognize the sale in its gross income in the year title to the goods passed to the customer, as determined under the state laws in which the store is located. c. Teal must recognize the sale in its gross income in 2020. d. Teal must recognize the sale in its gross income in 2021.

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