Falcon Corporation,a C corporation,had gross receipts of $3 million in 2007,$7 million in 2008,and $6 million in 2009.Hawk Corporation,a personal service corporation (PSC),had gross receipts of $3 million in 2007,$5 million in 2008,and $4 million in 2009.Which of the corporations will be allowed to use the cash method of accounting in 2010?
A)Falcon Corporation only.
B)Hawk Corporation only.
C)Neither Falcon Corporation nor Hawk Corporation.
D)Both Falcon Corporation and Hawk Corporation.
E)None of the above.

Question

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The Answer of Falcon Corporation,a C corporation,had gross receipts of $3 million in 2007,$7 million in 2008,and $6 million in 2009.Hawk Corporation,a personal service corporation (PSC),had gross receipts of $3 million in 2007,$5 million in 2008,and $4 million in 2009.Which of the corporations will be allowed to use the cash method of accounting in 2010?
A)Falcon Corporation only.
B)Hawk Corporation only.
C)Neither Falcon Corporation nor Hawk Corporation.
D)Both Falcon Corporation and Hawk Corporation.
E)None of the above.

Falcon Corporation,a C Corporation,had Gross Receipts of $3 Million in 2007,$7