In 2019, 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 2019 tax year.. At the beginning of 2019, 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 2019.

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The Answer of In 2019, 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 2019 tax year.. At the beginning of 2019, 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 2019.

In 2019, Brown Corporation, a Service Business, No Longer Qualifies