Accounting Analysis I: The Role of Accounting as an Information System | Online Course Support

In January 2016, Company X performed services for Company Y worth $60,000. Company Y paid Company X $40,000 towards the services prior to December 31, 2016. On January 1, 2016, Company X paid $30,000 for the next three years of rent. What should Company X recognize as net income on its 2016 year-end income statement under the accrual and cash methods of accounting?


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