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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The Answer of 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.

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