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Mike is a CPA. Widget, Inc., is an accrual-basis taxpayer. In Year 3, while preparing Widget's Year 2 return, Mike discovered that Widget failed to

Mike is a CPA. Widget, Inc., is an accrual-basis taxpayer. In Year 3, while preparing Widget's Year 2 return, Mike discovered that Widget failed to include income on its Year 1 return that Widget received in Year 2 but that should have been included in income in Year 1 under the accrual method of accounting. What must Mike do?

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