Use the information below to answer questions 1 - 2:<\/p>
<\/p>
<\/p>
Chris runs CJM, a small retail marketing business, as a limited liability company that is taxed as a sole proprietorship. CJM currently uses the cash method of accounting. After nine years in the business, the company has grown to a point where Chris believes he should switch to the accrual method of accounting. The business currently has $45,000 in accounts receivable that were not reported in income last year, because he operated the business on a cash basis. Also, he has $11,500 in accounts payable that were incurred in the prior year but were not deductible because no payment was made on them.<\/p>
<\/p>
<\/p>
1.In Chris's particular situation<\/p>
<\/p>
A.his filing of Form 3115 must first be amended<\/p>
B.the IRS will grant automatic approval and consent for the accounting change<\/p>
C.a six-month waiting period is required before any request of this nature can be acted upon<\/p>
D.the IRS will have to check all preliminary applications before consent, which is not automatic, is given<\/p>
<\/p>
2. Does he have to make any adjustments to his income when the approval is granted? If yes, how much?<\/p>", "transcribed_text": "", "related_book": { "title": "The Changing Geography Of Banking And Finance", "isbn": "1441947205, 978-1441947208", "edition": "1st Edition", "authors": "Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/03\/66050c9f889e3_94366050c9f62f22.jpg", "uri": "\/textbooks\/the-changing-geography-of-banking-and-finance-1st-edition-978-1441947208-260622", "see_more_uri": "" }, "free_related_book": { "isbn": "0840391021", "uri": "\/textbooks\/college-algebra-and-trigonometry-basics-through-precalculus-1st-edition-978-0840391025-156077", "name": "College Algebra And Trigonometry Basics Through Precalculus", "edition": "1st Edition" }, "question_posted": "2024-06-10 04:38:27", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/particle-is-moving-in-circle-with-constant-speed.", "description": "A particle is moving in a circle with constant speed. 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