CKC Just Received Permission from the IRS to Change Its

question 59

Multiple Choice

CKC just received permission from the IRS to change its method of accounting. CKC is uncertain if it now wants to change methods. Since it already has received permission to change,

• A) CKC must use the new method of accounting
• B) CKC may continue to use its current method of accounting only if it makes a timely election
• C) CKC may continue to use its current method of accounting only if it makes a timely election and subsequently receives IRS permission
• D) CKC may continue to use its current method of accounting even if it does not make a timely election

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Definitions:

Smartphone Manufacturing

The industrial process of designing, producing, and assembling components to create smartphones.

Public Utilities

Organizations that provide essential services to the public, such as water, electricity, natural gas, and telecommunications.

Smartphone Industry

A sector of the technology market focused on the development, production, and sale of smartphones.

Oligopoly

A market structure characterized by a few companies having control over a significant portion of the market share, influencing prices and competition.