Common use of Change in method Clause in Contracts

Change in method. X is a C cor- poration using an accrual method that elects to become an S corporation effective Janu- ary 1, 1996. In 1995, X received $5,000 for serv- ices to be rendered in 1996, and properly in- cluded the $5,000 in gross income. In 1996, X properly elects to include the $5,000 in gross income in 1996 under Rev. Proc. 71–21, 1971–2