WFO Corporation has gross receipts according to the following schedule: Year 1 $ 25.00 million Year 2 $ 27.00 million Year 3 $ 29.00 million Year 4 $ 29.50 million Year 5 $ 30.00 million Year 6 $ 31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
WFO Corporation has gross receipts according to the following schedule: Year 1 $ 25.00 million Year 2 $ 27.00 million Year 3 $ 29.00 million Year 4 $ 29.50 million Year 5 $ 30.00 million Year 6 $ 31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 16P
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Question
WFO Corporation has gross receipts according to the following schedule:
| Year 1 | $ 25.00 million |
|---|---|
| Year 2 | $ 27.00 million |
| Year 3 | $ 29.00 million |
| Year 4 | $ 29.50 million |
| Year 5 | $ 30.00 million |
| Year 6 | $ 31.00 million |
If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
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