Which of the following entities may select any tax

Which of the following entities may select any tax period (calendar or fi scal)? 39.
sole partnership a.
partnership b.
S corporations c.
trusts d.
corporations other than S corporations. e.
Which entities must have tax years that conform with the tax years of their owners? 40.
partnerships a.
S corporations b.
personal service corporations c.
all of the above d.
none of the above e.
Which factors should be considered when selecting a tax year for a taxpayer? 41.
business factors
42.
must use the same accounting methods for each business
43.
account for little revenue. Regarding accounting methods, Simond:
must use the accural basis to account for income and expenses
d.
Which of the following accounting changes is not considered a major change? 44.
change in the method of valuing inventory a.
change from the accrual basis to the cash basis b.
change in the use of a specialized method of computing income, such as the crop method for farmers c.
correction of a mathematical error d.
all of the above are major changes e.
none of the above are major changes f.
Stanton Inc. is a calendar year, cash basis taxpayer. The IRS required Stanton Inc. to change to the accrual 45.
method of accounting for 2010. Net income for 2010 under the accrual basis was $60,000 before any
adjustments. On December 31, 2009, the balances in inventory, accounts receivable, and accounts payable
were $5,000, $15,000, and $6,000, respectively. Stanton’s 2010 “adjusted” net income is:
e.

614 CCH Federal Taxation—Basic Principles
Chapter 13 © 2010 CCH. All Rights Reserved.
Schull Co. uses the LIFO method to account for its inventories. It can use the following method in 46.
combination with LIFO:
speci fi c identi fi cation a.
lower cost or market b.
dollar value techniques c.
all of the above d.
none of the above e.