Browne and Red, both C corporations, formed the BR Partnership on January 1, 2019. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BRs gross receipts were $22 million, $28 million, $31 million, and $32 million, respectively, for the next four tax years. Describe the methods of accounting available to BR in each tax year.

A PARTNERSHIP FIRM WITH BOTH C CORPORATION MAY NOT USE CASH METHOD OF ACCOUNTING, BUT THERE IS AN EXCEPTION TO THIS RULE THAT IF GROSS RECEIPTS ARE BELOW $5 MILLION.

SO HERE IN THE ABOVE BROWNE AND RED CASE THEY MAY USE CASH OR ACCURAL METHOD FOR 2014, 2015, 2016, ALTHOUGH THE GROSS RECEIPTS OF 2016 EXCEEDING $5 MILLION LIMIT THE AVERAGE GROSS RECEIPT OF LAST THREE YEAR IS STILL BELOW $5 MILLION.

BUT IN YEAR 2017 THEY HACE TO CHANGE THE ACCOUNTING METHOD TO ACCURAL METHOD.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: