Which of the following entities may select any tax period (calendar or fiscal)? 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.
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