WFO Corporation has gross receipts according to the following schedule: Year 1 $ 21.00 million Year 2 $ 22.00 million Year 3 $ 23.00 million Year 4 $ 29.50 million Year 5 $ 40.00 million Year 6 $ 22.00 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? O Year 5 O Year 6 O None of the choices is correct. O Year 4 O Year 3
WFO Corporation has gross receipts according to the following schedule: Year 1 $ 21.00 million Year 2 $ 22.00 million Year 3 $ 23.00 million Year 4 $ 29.50 million Year 5 $ 40.00 million Year 6 $ 22.00 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? O Year 5 O Year 6 O None of the choices is correct. O Year 4 O Year 3
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:WFO Corporation has gross receipts according to the following schedule:
Year 1 $ 21.00 million
Year 2 $ 22.00 million
Year 3 $ 23.00 million
Year 4 $ 29.50 million
Year 5 $ 40.00 million
Year 6 $ 22.00 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?
O Year 5
O Year 6
O None of the choices is correct.
O Year 4
O Year 3
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