Which of the following businesses can use the cash method?
I.The Donner Group,a partnership with 3 equal partners,of which one is The Garden Corporation.Average revenues for the Donner Group,a consulting firm,over the last three years are $4,000,000.
II.The Mongoose Corporation,a computer software consultant that has average annual fees from services over the last three years are $2,100,000.

Question

Which of the following businesses can use the cash method?
I.The Donner Group,a partnership with 3 equal partners,of which one is The Garden Corporation.Average revenues for the Donner Group,a consulting firm,over the last three years are $4,000,000.
II.The Mongoose Corporation,a computer software consultant that has average annual fees from services over the last three years are $2,100,000.
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Quizplus · Accepted Answer

The Mongoose Corporation can use the cash method because it is a personal service corporation with average annual gross receipts of $2,100,000, which is below the $25 million threshold. The Donner Group cannot use the cash method because it is a partnership with a corporate partner and has average revenues exceeding the threshold.

Which of the Following Businesses Can Use the Cash Method