A C corporation provides office janitorial services to various businesses.The corporation has average annual gross receipts of $2,500,000.The corporation can use the cash method of accounting.

Question

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According to the IRS, corporations with average annual gross receipts of less than $25 million for the previous three years can use the cash method of accounting. Therefore, this corporation with average annual gross receipts of $2,500,000 can use the cash method of accounting.

A C Corporation Provides Office Janitorial Services to Various Businesses