ACME Partnership, a consulting firm, has had the following gross receipts since its formation: $22,800,000 in...

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ACME Partnership, a consulting firm, has had the following gross receipts since its formation: $22,800,000 in year 1, $24,600,000 in year 2, $33,800,000 in year 3 and $31,700,000 in year 4. ACME is not a tax shelter. Assume the gross receipts threshold for Year 3 is $25,000,000 and Year 4 is $27,000,000. In which tax years must ACME start using the accrual method? A) Year 3 if none of the partners is a C corporation. B) Year 4 if none of the partners is a C corporation. C) Year 3 if one of the partners is a C corporation. D) Year 4 if one of the partners is a C corporation. ACME Partnership, a consulting firm, has had the following gross receipts since its formation: $22,800,000 in year 1, $24,600,000 in year 2, $33,800,000 in year 3 and $31,700,000 in year 4. ACME is not a tax shelter. Assume the gross receipts threshold for Year 3 is $25,000,000 and Year 4 is $27,000,000. In which tax years must ACME start using the accrual method? A) Year 3 if none of the partners is a C corporation. B) Year 4 if none of the partners is a C corporation. C) Year 3 if one of the partners is a C corporation. D) Year 4 if one of the partners is a C corporation.

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The correct answer is C Year 3 if one of the partners is a C corporation Explanation According to th... View the full answer