LO7 Which accounting method must each of the following taxpayers use?

a. Fax, Inc., is an S corporation wholly owned by Helena. She uses a calendar year to report her income.

b. Assume the same facts as in part

a, except that Fax, Inc., is a corporation. Its annual revenues have never exceeded $1,000,000.

c. Assume the same facts as in part

b, except that Fax’s annual revenues usually are between $7,000,000 and $8,000,000.

d. Spoke and Pedal Cyclery is organized as a partnership. It is owned by John and Gloria as equal partners.

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