Final answer:
Jade Corporation is eligible to use the cash method for 2015 as its average gross receipts over the previous three years are under the $5 million threshold. Lime Corporation exceeds the threshold and would not be allowed to use the cash method for 2015, barring any specific exceptions for personal service corporations.
Step-by-step explanation:
The C corporations that are allowed to use the cash method of accounting are typically those that meet specific criteria related to their annual gross receipts. The threshold for gross receipts is typically averaged over three years. A C corporation may use the cash method if its average annual gross receipts for the preceding three tax years do not exceed $5 million.
In this case, Jade Corporation's gross receipts are $5.3 million for 2012, $4.1 million for 2013, and $5 million for 2014. The average over these three years is ($5.3 million + $4.1 million + $5 million) / 3 = $4.8 million, which is below the threshold. Therefore, Jade Corporation is eligible to use the cash method for 2015.
Lime Corporation, being a personal service corporation, might have different criteria for using the cash method, depending on tax legislation at the time. For 2015, assuming the same $5 million threshold applies (ignoring any specific provisions or exemptions for personal service corporations), Lime Corporation had gross receipts of $5.8 million for 2012, $5.2 million for 2013, and $4.4 million for 2014.