Homework Answers
As per the IRS rules
A corporation cannot use cash method of accounting if the annual gross receipts in past 3 taxable years exceeds $25 million.
Option a is incorrect as it is stating $ 1 million
Option b incorrect as it is stating $15 million
Option c is correct as it states accrual method for corporation if annual sales in last 3 years is more than $26 million ( which is the Crux of IRS rule)
Option d is also incorrect as it provides wrong figures.
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