Question

g In November and December 2017, Marigold Corp., a newly organized magazine publisher, received $79800 for 1,000 three-year subscriptions at $25 per year, starting with the January 2018 issue. Marigold included the entire $79800 in its 2017 income tax return. What amount should Marigold report in its 2017 income statement for subscriptions revenue

Answer 1

$0

Step-by-step explanation:

According to the revenue recognition principle, the revenue should be recorded when the service is delivered or it is recognized not when the cash is received

Therefore the amount of $79,800 would be the deferral and should be recorded from Jan 2018 when the subscription starts issued

Hence, no amount would be recognized