Homework Answers
C. A regular corporation in the retail business with individuals as shareholders and having average annual gross receipts for the required period of $29,000,000.
note;
It has been specifically mentioned that a corporation (not being an S corporation) with average annual gross receipts for three years exceeding $25 million, cannot use cash method.
Even a partnership which has a corporation (not being an S corporation) as a partner and having the average annual gross receipts for three preceeding tax years in excess of $25 million cannot use cash method.
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