Year 1 $21.00 million Year 2 $25.00 million Year 3 $23.00 million Year 4 $28.50 milli
Year 1 $21.00 million Year 2 $25.00 million Year 3 $23.00 million Year 4 $28.50 milli
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 | $21.00 million |
| Year 2 | $25.00 million |
| Year 3 | $23.00 million |
| Year 4 | $28.50 million |
| Year 5 | $29.00 million |
| Year 6 | $25.00 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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