Gaffey Corporation is a wholesale distributor of auto parts and uses the cash method of accounting. The companys sales have been about $11,000,000 per year for the last few years. However, Gaffey has the opportunity to acquire an unincorporated competitor with annual sales of $12,100,000 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