Boise Corporation has gross receipts according to the following schedule:

Year 1 $23 million

Year 2 $22 million

Year 3 $25 million

Year 4 $27 million

Year 5 $28 million

Year 6 $27 million

If Boise began business as a cash-method corporation in Year 1, in which year would it first have been required to use the accrual method?

Multiple Choice

• None of the choices are correct.

• Year 3

• Year 4

• Year 6

• Year 5