Exercise $18-26($Algorithmic$)($LO$.2)$

Gaffney Corporation is a wholesale distributor of auto parts and uses the cash method of accounting. The company's sales have been about $$16,500,000$ per year for the last few years. However, Gaffney has the opportunity to acquire an unincorporated competitor with annual sales of $$18,150,000.$

Complete the following paragraph regarding the accounting implications of acquiring the competitor.

For the year of acquisition, Gaffney and the acquired business will be treated as a single business consider the combined gross receipts of both $\frac{\frac{?}{?}}{?}.$ Gaffney must $$ exceed :

$x$ statutory thre prior three$-$year period

for the year of the acquisition.