ELS corporation is about to begin its sixth year of existence. Assume that ELS reported gross receipts for each of its first five years of existence for scenarios A, B, and C as follows:

a. In what years is ELS allowed to use the cash method of accounting under Scenario A?
b. In what years is ELS allowed to use the cash method of accounting under Scenario B?
c. In what years is ELS allowed to use the cash method of accounting under Scenario C?

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Scenario B $3,000,000 $5,000,000 $7,500,000 S6,000,000 S4,500,000 Year of Existence Scenario A S4,000,000 $5,000,000 $5,900,000 S6,000,000 S4,500,000 Scenario S5,500,000 $5,000,000 S4,750,000 $5,000,000 $5,250,000