On January 1, 2018, an Accrual Basis Taxpayer Entered into a Contract

True/False

On January 1, 2018, an accrual basis taxpayer entered into a contract to provide termite inspection service each month for 24 months. The amount received for the contract was $2,400. The taxpayer reported $1,200 as income on its financial statement for 2018, and should do the same for its tax return.