![jsndbdbsbsj](/avatars/22708.jpg)
jsndbdbsbsj
19.02.2021 •
Business
WFO Corporation has gross receipts according to the following schedule:
Year 1
$22.00 million
Year 2
$24.00 million
Year 3
$26.00 million
Year 4
$24.50 million
Year 5
$25.00 million
Year 6
$27.00 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?
Solved
Show answers
More tips
- L Leisure and Entertainment What Movies You Should Watch: A Guideline to Make the Right Decision...
- F Family and Home How to Choose a Baby Stroller: Tips from Experienced Parents...
- H Health and Medicine 5 Simple Steps to Quit Smoking for Good...
- C Computers and Internet How to Download Videos from YouTube? Simple Steps to Download Any Content...
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- S Style and Beauty How to Get Rid of Acne: Scientifically Proven Methods...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- C Computers and Internet How to Delete Your Account on Odnoklassniki...
- H Health and Medicine 10 Simple and Effective Tips on How to Lose Weight in a Week...
- F Food and Cooking What s the Best Rice for Cooking Plov?...
Answers on questions: Business
- B Business Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $9,000 for a good used car but only...
- B Business Margaret Lindley paid $15,120 of interest on her $301,200 acquisition debt for her home (fair market value of $501,200), $4,120 of interest on her $30,120 home-equity...
- B Business Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,300 on January 15, 2018. On December 31, 2020, she sold all 1,000 shares of her Ibis stock for $4,650....
- B Business Determine the amount of money in a savings account at the end of 4 years, given an initial deposit of $7,000 and a 4 percent annual interest rate when interest is compounded:...
- B Business At the December 31, 2017 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset...
- B Business Universal Travel Inc. borrowed $500,000 on November 1, 2021, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity on October 31,...
- B Business Which of the following is NOT a correct observation related to Porter s Five Forces?A. The threat of new entrants will result in high industry profits when barriers...
- B Business The Muffin House produces and sells a variety of muffins. The selling price per dozen is $18, variable costs are $7 per dozen, and total fixed costs are $9900. What...
- B Business Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,000 for the same period. Actual direct...
- B Business For each of the following situations, identify the full cost (opportunity cost) involved: a. Monique quits her $50,000 per-year job as an accountant to become a full-time...
Ответ:
WFO Corporation
Given WFO Corporation's annual gross receipts, which exceed $20 million, it is expected to use the accrual basis starting from Year 1, whether it is a C-Corporation or an S-Corporation.
Explanation:
a) Data and Calculations:
Gross Receipts:
Year 1 $22.00 million
Year 2 $24.00 million
Year 3 $26.00 million
Year 4 $24.50 million
Year 5 $25.00 million
Year 6 $27.00 million
b) For a C-Corporation, when the average gross receipts for the past three years exceed $5 million, the corporation is expected to change from cash basis to accrual basis. Assuming that WFO Corporation is an S-Corporation, it is expected to change to the accrual basis if its annual gross receipts exceed $10 million.
Ответ: