A Positive § 481 Adjustment from a Change in Method

question 36

True/False

A positive § 481 adjustment from a change in method of accounting initiated by the taxpayer is spread equally over the year of change and the three following years.

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Definitions:

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership of the company.

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic effects.

Acquisition

The process by which a company buys most or all of the target company's ownership stakes to assume control.

Stockholders

Stockholders, or shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, granting them equity ownership.