In 2020, Brown Corporation, a Service Business, No Longer Qualifies

question 78

Essay

In 2020, Brown Corporation, a service business, no longer qualifies as a small business.Thus, it must change from the cash to the accrual method starting with its 2020 tax year..At the beginning of 2020, Brown had accounts receivable of $575,000.Also, Brown had accounts payable of $345,000.Determine the adjustment to income due to the change in accounting method and the amount that is allocated to 2020.

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Definitions:

Intergroup Conflict

A state of affairs in which groups having opposing interests take antagonistic actions toward one another to control some outcome important to them.

Observational Research

A research method involving the systematic recording of observable behaviors or events in their natural setting without intervention by the researcher.

Archival Research

A research method that involves the study of historical records and documents to gather data and test hypotheses.

Dairy Research

Scientific study focused on dairy products and their production, including aspects such as cattle health, milk yield, and product development.