Falcon Corporation, a C corporation, had gross receipts of $3 million in 2008, $7 million in 2009, and $6 million in 2010. Hawk Corporation, a personal service corporation (PSC), had gross receipts of $3 million in 2008, $5 million in 2009, and $4 million in 2010. Which of the corporations will be allowed to use the cash method of accounting in 2011?
A) Neither Falcon Corporation nor Hawk Corporation.
B) Both Falcon Corporation and Hawk Corporation.
C) Falcon Corporation only.
D) Hawk Corporation only.
E) None of the above.

Question

Quizplus · Accepted Answer

The Answer of Falcon Corporation, a C corporation, had gross receipts of $3 million in 2008, $7 million in 2009, and $6 million in 2010. Hawk Corporation, a personal service corporation (PSC), had gross receipts of $3 million in 2008, $5 million in 2009, and $4 million in 2010. Which of the corporations will be allowed to use the cash method of accounting in 2011?
A) Neither Falcon Corporation nor Hawk Corporation.
B) Both Falcon Corporation and Hawk Corporation.
C) Falcon Corporation only.
D) Hawk Corporation only.
E) None of the above.

Falcon Corporation, a C Corporation, Had Gross Receipts of $3