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Magenta Corp began business on June 1 last year and reports gross receipts of $16 million. Does Magenta satisfy the Gross Receipts Test and have

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Magenta Corp began business on June 1 last year and reports gross receipts of $16 million. Does Magenta satisfy the Gross Receipts Test and have justification to use the cash method of accounting in year 1 ? Yes or no? Explain why and show your work ( 20 points)

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