c) You overhear another one of your neighbors saying that her C corporation uses accrual basis

accounting for both its U.S. GAAP financial statements and its federal income tax purposes, so

she simply uses the amount of net income from the books as the amount of taxable income on the

corporate income tax return. Explain why you agree or do not agree with this perspective. In

addition, briefly explain how a C corporation correctly determines whether it can use the cash

method of accounting when preparing its Form 1120.