Problem $16-42($LO$.2,5)$

Select the accounting method that the taxpayers are allowed to use in the following businesses.

a$.$A gift shop with average annual gross receipts of $$900,000.$

AccrualCashModified CashModified Cash but Cash for recognizing sales

b$.$An accounting partnership with average annual gross receipts of $$12,000,000.$

AccrualCashModified CashModified Cash but Cash for recognizing sales

c$.$A drywall subcontractor who works on residences and records annual gross receipts of $$3,000,000.$

AccrualCashCash or Completed ContractCash or Percentage of CompletionModified Cash

d$.$An incorporated insurance agency with average annual gross receipts of $$33,000,000.$

AccrualCashModified CashModified Cash but Cash for recognizing sales

e$.$A sole proprietor operating a retail clothing store with average annual gross receipts of $$12,000,000.$

AccrualCashModified CashModified Cash but Cash for recognizing sales

f$.$A sole proprietor operating a widget manufacturing plant with average annual gross receipts of $$33,000,000.$

AccrualCashModified CashModified Cash but Cash for recognizing sales