Copper Corporation, a C Corporation, Had Gross Receipts of $25

question 40

Multiple Choice

Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Gold Corporation, a personal service corporation (PSC) , had gross receipts of $24 million in 2015, $27 million in 2016, and $25 million in 2017. Which of the corporations will be allowed to use the cash method of accounting in 2018?

• 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.

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Definitions:

Enolizable Ketone

A ketone capable of tautomerizing to an enol, which is a compound with a double bond and an alcohol group.

Enolate Salt

A negatively charged ion formed by the deprotonation of an alpha-carbon of a carbonyl compound, involved in various organic synthesis reactions.

Lithium Diisopropylamide

A strong non-nucleophilic base, represented as LDA, used in organic synthesis for deprotonation reactions.

Methyllithium

A highly reactive organolithium reagent used in organic synthesis to form carbon-carbon bonds.