Copper Corporation, a C Corporation, Had Gross Receipts of $5

question 83

Multiple Choice

Copper Corporation, a C corporation, had gross receipts of $5 million in 2009, $6 million in 2010, and $3 million in 2011.Gold Corporation, a personal service corporation (PSC) , had gross receipts of $4 million in 2009, $7 million in 2010, and $5 million in 2011.Which of the corporations will be allowed to use the cash method of accounting in 2012?

• A)Copper Corporation only.
• B)Gold Corporation only.
• C)Both Copper Corporation and Gold Corporation.
• D)Neither Copper Corporation nor Gold Corporation.
• E)None of the above.