Blue Corporation began business on April 1 of last year and reported gross receipts of $18 million. Which of the following is true statement about the gross receipts test as applied to Blue?

Multiple Choice

• Blue cannot qualify because they do not have gross receipts for the entire prior three year period

• Blue will qualify because their average gross receipts is only $24 million

• Blue will qualify because their average gross receipts is only $18 million

• Blue cannot qualify until the firm reports gross receipts for an entire year

• none of these are correct