Detailed Instructions: In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Problem:underlying payment in income, it effectively changed India Music's treatment of a material item. We agree. From 1998 to 2004, India Music accounted for the accounts payable owed to HRI on an accrual basis, deducting the payments from income each year as they became fixed. But since HRI was a cash-basis taxpayer, it could not include the payments from India Music in its income until it received those payments. See Arnwine v. Comm'r, 696 F.2d 1102, 1111 ( nge in accounting method for the purposes of 481 because it forced India Music to "com-put[e]" its taxable income for the tax year 2004 "under a method of accounting different from the method under which [India Music's] taxable income for the preceding taxable year was computed." 26 U.S.C. 481; see Graff Chevrolet, 343 F.2d at 572 (<HOLDING>). Therefore, we find that the language of
Holding statements: (A) holding that a change in the method of compensation met the consideration requirement of contract formation (B) holding that a permanent change in income constitutes a substantial change in circumstances justifying a reduction of alimony (C) holding that a change of venue has no affect on the applicable state law and that change of venue is but a change of courtrooms (D) holding that 481 authorizes necessary adjustments to income in the year of change whether the change in method of accounting was initiated by the taxpayer or the commissioner (E) holding that tolling inappropriate where data supplied to fund reflected change in accounting method which was central to dispute
Solution:
holding that a change in the method of compensation met the consideration requirement of contract formation