Lump settlement from business contract settlement

Dec 14, 2006 2 Replies

If a company receives a large lump sum settlement from a lawsuit against a customer is it all includable in income in the year recieved?(assuming cash basis method of accounting). Are there any conditions that might allow them to defer the income? Installment payments are not an option.




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When in doubt, ask "WWGD"? (what would GAAP do?) or say.

ChEAr$, Harlan Lunsford, EA n LA

When in doubt, ask "WWGD"? (what would GAAP do?) or say.

ChEAr$, Harlan Lunsford, EA n LA

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