Question
Which of the following is not true of personal service corporations (PSCs)? A. One of the exceptions to the requirement that a PSC have a
Which of the following is not true of personal service corporations (PSCs)?
| A. | One of the exceptions to the requirement that a PSC have a calendar year-end occurs when the PSC chooses a deferral period of 3 months or less and pays its owner(s) a salary at least pro rata to the salary paid for the previous year. | |
| B. | PSCs are corporations with shareholder-employees who provide services in fields such as medicine, law and accounting. | |
| C. | PSCs generally use year-ends that are the same as their professional shareholders. | |
| D. | PSCs may not use the cash method of accounting. |
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