Gaffney Corporation is a wholesale distributor of auto parts and uses the cash method of accounting. The company's sales have been about $$15,825,000$ per year for the last few years. However, Gaffney has the opportunity to acquire an unincorporated competitor with annual sales of $$17,407,500.$

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

two separate businesses a single business a single business.

Gaffney must may elect to must

consider the combined gross receipts of both businesses in determining if the average annual gross receipts for the prior three$-$year period exceed $fill in the blank $3$ statutory threshold. $**$ need help with calculating the number$****$

Therefore, Gaffney will likely be able to continue using the cash method required to change to the accrual methodrequired to change to the accrual method for the year of the acquisition.