Lavonne just completed medical school and residency. She plans to open her medical practice soon….

Lavonne just completed medical school and residency. She plans to open her medical practice soon. She is nor familiar with the intricacies of accounting methods and periods. On advice of her attorney, she plans to form a professional corporation (a form of organizat ion permitted under the laws of most states that does not have the usual limited liability found with business corporations, but is taxed as a corporation). She has asked you whether she should elect a fiscal year and whether she should use the cash or accrual method of reporting income . Discuss whether the options are available to her and the implications of available choices.

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