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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Scenarlo B Year of Existence Scenarlo A Scenario C $25,500,000 25,000,000 24,750,000 25,000,000 $24,000,000 $23,000,000 3 4 25,900,000 26,000,000 27,500,000 26,000,000 24,500,000 25,250,000