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ANEK [815]
4 years ago
10

Edgar uses the cash method to report the income from his software consulting business. A large publicly held corporation has off

ered to invest in Edgar’s business as a limited partner. What tax accounting complications would be created if Edgar and the corporation became partners?
Business
1 answer:
Ugo [173]4 years ago
4 0

Answer:

If Edgar decides to become partners with the corporation, he'll need to change from cash method to the use of accural method.

Explanation:

If Edgar engages with this large publicly held corporation in a limited partnership, he will have to change from the cash method and use the accrual method of accounting.

The use of the cash method by corporations isn't allowed by IRS and the accrual method is needed to report income earned for Federal income tax purposes to ensure proper and precise reflection of annual income.

In the cash method, Edgar will not currently recognize income until it is actually received. While under the accrual method Edgar would recognize income when it is earned, irrespective of when the income is to be collected.

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Answer:

1. Payoff matrix : Strategic form

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Explanation:

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They are strict with absences and tardies, 3 tardies make one absence, and absences put penalties on your highschool resume/record, depending on how many penalties from absences and tardies you get, they kick you out of the school which is not fair if you have construction workers on the road  slowing you down on your way to school for 3 months.

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