1- An S corporation may select any tax year as long as it ends on the last day of a month.

a. True

b. False

2- A positive 481 adjustments from a change in the method of accounting initiated by the taxpayer is spread equally over the year of change and the three following years.

a.True

b. False

3- In the case of a sale reported under the installment method, the gain is recognized in each year the seller collects on the installment contract.

1. True
2. False