WFO Corporation has gross receipts according to the following schedule: Year 1 $22.90 million Year 2 $25.80 million Year 3 $26.60 million Year 4 $27.60 million Year 5 $28.10 million Year 6 $29.10 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?
Here in this question,
Year 6 would it have first been required to use the accrual method
WFO Corporation has gross receipts according to the following schedule: Year 1 $22.90 million Yea...
WFO Corporation has gross receipts according to the following schedule: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $22.00 million $24.00 million $26.00 million $26.50 million $27.00 million $28.00 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? Multiple Choice O Year 3. Year 4. O Year 5. Year 6. None of the choices are correct.
Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Gold Corporation, a personal service corporation (PSC), had gross receipts of $24 million in 2015, $27 million in 2016, and $25 million in 2017. Which of the corporations will be allowed to use the cash method of accounting in 2018? a. Copper Corporation only. b. Gold Corporation only. c. Both Copper Corporation and Gold Corporation. d. Neither Copper...
FruAgro Company has average annual gross receipts of $30 million annually. This year, FruAgro earned $1 million of business interest income, incurred $10 million of business interest expense and has adjusted taxable income of $17 million. Required: Compute FruAgro’s current deduction for business interest and the amount of any business interest carryforward.
in the case of a retailer with a average annual gross receipts that would not fall under the small business exception: 1. the installment method must be used to report income from the sale of inventory. 2. the cash method can be used for sales and cost of goods sold. 3. the accrual basis must be used for sales and cost of goods sold. 4. the cash method is required 5. none of the above
Which of the following statements describe the correct rules for the accounting method generally required for corporations? Accrual if the corporation had average sales (gross receipts) for the past three years of less than $1 million. Cash if the business is a personal service business with over $15 million in sales. Accrual if the corporation has more than $26 million in average annual sales for the past three years. Accrual if the business is a service company and has over...
FruAgro Company has average annual gross receipts of $32 million annually. This year, FruAgro earned $3 million of business interest income, incurred $7 million of business interest expense and has adjusted taxable income of $7 million. Compute FruAgro’s current deduction for business interest and the amount of any business interest carryforward. (Enter your answers in dollars not in millions of dollars.)
FruAgro Company has average annual gross receipts of $74 million annually. This year, FruAgro earned $3 million of business interest income, incurred $11 million of business interest expense and has adjusted taxable income of $21 million. Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. (Enter your answers in dollars not in millions of dollars) Business interest deduction Business interest carryforward
Question 2 (6 Points) Andersen Corporation, a calendar year, accrual method, C-Corporation, is in the business of manufacturing glass based products. In 2019, Andersen Corporation had taxable income before any limitations of $500.000. Andersen Corporation's had average annual gross receipts over the previous three tax years of $29,000,000. The following items of income and deductions are included in the computation of taxable income $400,000 business interest expense $250,000 depreciation $30,000 business interest income $75,000 amortization $100,000 research and development expenses...
31. Corona Corporation has the following income and expense items for the year: Gross receipts from sales $75,000 Dividends received from 30%-owned domestic corporation 50,000 Expenses connected with sales 40,000 The taxable income of Ghandi Corporation is A) $100,000. B) $85,000. C) $52,500. D) $35,000.
The BRS Corporation makes collections on sales according to the following schedule: 45% in month of sale 48% in month following sale 7% in second month following sale The following sales have been budgeted: Sales April $ 120,000 May $ 100,000 June $ 140,000 Budgeted cash collections in June would be: Multiple Choice $119,400 $140,000 $140,840 $111,000