If a business is NOT a qualifying small business taxpayer, which statement is correct about the requirement to track inventory? Inventory must be tracked $\_\_\_\_\_\_\_.$

In every case in which the production, purchase, or sale of merchandise is an income$-$producing factor for that business.

If the business involves exclusively the sale of merchandise that it purchases for resale or produces for customers.

If the business involves exclusively providing services to its customers.

Only at the beginning and the end of each year where it produces or purchases items to sell.