1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreev551 [17]
3 years ago
11

Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Go

ld 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 Corporation nor Gold Corporation.
e. None of the above.
Business
2 answers:
Aleksandr [31]3 years ago
4 0

Answer:c. Both Copper Corporation and Gold Corporation.

Explanation:Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

Generally, a small business can use either the overall cash method of accounting or an overall accrual method of accounting. ... The overall cash method of accounting is available for S corporations, partnerships that do not have a C corporation as a partner, and personal service corporations (PSCs).

OLEGan [10]3 years ago
4 0

Answer:

Explanation:

Corporation/businesses that qualify for cash based accounting:

• Individuals

• Service Business

• Custom Manufacturer

• Qualified Personal Service

• Farming Business

A corporation or partnership meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $25,000,000.

Average = total earnings in 3 years/3

= ($25 million + $26 million + $23 million)/3

= 24.67 million

$24.67 million is less than $25 million

Therefore, copper corporation meets the criteria for cash based accounting.

Gold corporation is a personal corporation so it also meets rhe criteria for cash based accounting.

You might be interested in
An investigator conducting a study of a medical device under an ide is required to complete and sign what?
Rudik [331]

Answer: An investigator conducting a study of a medical device under an IDE is required to complete and sign an investigator's agreement. It is a statement that states general key factors such as investigator's commitment to conduct the investigation in accordance with the rules stated down in the agreement. It also look into all testing of the device involving subjects such as human and animals, and ensure that the requirements for obtaining informed consent are met.

5 0
3 years ago
Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay
Neporo4naja [7]

Answer:

d. is correct

Explanation:

8 0
2 years ago
On October 1, year 14, Park Co. purchased 200 of the $1,000-face-value, 10% bonds of Ott, Inc., for $220,000, including accrued
lana [24]

Answer:

Bond receivable - Ott Inc 200,000

Premium on B.R Ott Inc       14,400

Interest receivables             10,000

Net:                                     224,400

Explanation:

As Park Co uses straight line method, we don't have to solve for the present value of the bond we directly label the difference between cost and face value as premium or discount accordingly. Premium when above and discount when lower.

accrued interest:

200 bonds x $1,000 each x 10% x 3/12 = 5,000

220,0000 cost - 5,000 interest - 200,000 face value = 15,000 bond premium

Balance at December year 15:

the interest payable will be for the entire period:

200,000 x 10% / 2 = 10,000

the premium will be amortized for 3 month.

and it has outstanding 75 month to mature from October 1st

15,000 x 3 / 75 months = 600

carrying value 15,000 - 600 = 14,400

8 0
2 years ago
Which of the following is an example of crowding out? Question 13 options: A decrease in the rate of growth of the money supply
Dmitriy789 [7]

Answer:

A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

Explanation:

In domain of economics, crowding out

can be regarded as a phenomenon which take place as a result of increased in involvement of government in market economy sector which substantially has effect on remainder of the market, this effect could be on the supply side, it could be on demand side of the market. An example of crowding out is A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

7 0
3 years ago
B2B markets differ from B2C markets because: Group of answer choices salespeople personally call on business customers to a far
yKpoI14uk [10]

Answer:

salespeople personally call on business customers to a far greater extent than they do consumers.

Explanation:

Business to business (B2B) markets differ from Business to consumers (B2C) markets because salespeople personally call on business customers to a far greater extent than they do consumers.

Under the B2B sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.

On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.

6 0
3 years ago
Other questions:
  • Kyla is a first-time entrepreneur. She started a small business a few months ago. She encounters small problems on a daily basis
    11·1 answer
  • CompX Inc. is an online retailer of electronic products including laptops and tablets. The company is known for its unique appro
    14·1 answer
  • Assume that ABCO is a U.S. multinational corporation. Its foreign subsidiaries must report income in their respective countries
    12·1 answer
  • Devonaile inc. is a small-scale apparel manufacturer in florida. devonaile and other similar firms from florida collaborate and
    10·1 answer
  • How much would you have to deposit today if you wanted to have $60,000 in four years? Annual interest rate is 9%. (PV of $1, FV
    9·1 answer
  • To succeed in today's competitive marketplace, companies need to be customer centered. Each company must divide up the total mar
    12·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    6·1 answer
  • Question 1 A small company manufactures three different electronic components for computers. Component A requires two hours of f
    8·1 answer
  • On the far right side of the AS curve, the economy is producing ________ potential, and on the far left of the curve, it is prod
    6·1 answer
  • In the car insurance case study, text mining was used to identify auto features that caused injuries. Group of answer choices Tr
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!