Answer: A C corporation that is substantially owned by its employees and whose business is selling goods with annual gross receipts in excess of $5 million for all tax years since its inception.
Explain your answer!
The corporation in this question could not apply the cash method due to the fact they have in excess of $5 million average in gross receipts annually. The exception to this would be if it was a personal service corporation. To qualify as a personal service corporation it must provide substantial services in health care, accounting, architecture, engineering, or performing arts, among others.
2. Dowd, a cash-basis engineering consultant, wanted to