### Accounting Methods and Fiscal Year Determination for Partnerships#### a) Overview of the BR PartnershipThe BR Partnership was formed on January 1, 2021, by combining two corporations, B and R. Neither corporation is classified as a personal service corporation, and BR is not a tax shelter. The gross receipts for BR from 2021 to 2024 are as follows:- **2021:** $22,000,000- **2022:** $28,000,000- **2023:** $34,000,000- **2024:** $36,000,000**Objective:** Identify the accounting methods available to BR for each tax year.- **2021:**- **2022:**- **2023:**- **2024:**#### b) Fiscal Year for the ABC PartnershipPartners A, B, and C form the ABC Partnership. This partnership does not have a business purpose for using a specific tax year.- **Partners' Fiscal Years:** - A utilizes a calendar year. - B uses a fiscal year ending in March. - C uses a fiscal year ending in August.- **Profit Sharing Percentages:** - A: 15% - B: 45% - C: 40%**Question:** What year-end must the partnership use? ---This exercise involves understanding partnership formations, tax obligations, and selecting appropriate accounting and fiscal year methods based on partnership agreements and profit distribution.

A partnership seems to be an agreement involving two or more individuals to manage a firm as well as…

a) The BR Partnership on January 1, 2021 was formed from two corporations, B and R. Neither B nor R is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $22,000,000, $28,000,000, $34,000,000, and $36,000,000, respectively, for 2021 to 2024. Indicate the methods of accounting available to BR in each tax year. 2021: 2022: 2023: 2024:

a) The BR Partnership on January 1, 2021 was formed from two corporations, B and R. Neither B nor R is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $22,000,000, $28,000,000, $34,000,000, and $36,000,000, respectively, for 2021 to 2024. Indicate the methods of accounting available to BR in each tax year. 2021: 2022: 2023: 2024:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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