Gaffey Corporation is a wholesale distributor of auto parts and uses the cash method of accounting. The companys sales have been about $10,350,000 per year for the last few years. However, Gaffey has the opportunity to acquire an unincorporated competitor with annual sales of $11,385,000

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

For the year of acquisition, Gaffey and the acquired business will be treated as (2 separate businesses/one business) . Gaffey (must/may elect to) consider the combined gross receipts of both businesses in determining if the average annual gross receipts for the prior three-year period exceed $_________________ statutory threshold. Therefore, Gaffey will likely be (able to continue using the cash method/required to change to the accrual method) for the year of the acquisition.