A individual and corporation computes its gross income and deductions the same, with some exceptions, although corporations

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A individual and corporation computes its gross income and deductions the same, with some exceptions, although corporations are required to use the accrual method of accounting. At what annual gross receipts minimum threshold grants a corporation the ability to adjust to the cash method of accounting for tax purposes? Question 1Answer a. 150 million b. 25 million c. 10 million d. 50 million

What income tax structure may motivate high-income individuals to convert or establish a corporation form to protect income from the top individual tax rate of 37 percent?

a. 40-percent reduction

b. 15-percent rate

c. Flat 21-percent

d. Max 37-percent