Speak Corporation, a calendar-year, CASH-BASIS taxpayer, sell packages of foreign language lessons to individuals planning to work overseas. In December 2019, it sold and received payment for $600,000 of 24-month lesson packages to be provided evenly through 2020 and 2021. Speak Corporation will recognize the $600,000 of income:
A. all in 2019
B all in 2020
C half in 2020 and half in 2021
D all in 2021
The cash basis of accounting recognizes revenues when cash is received, and expenses when they are paid.
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