Strata Corporation VRX123 just finished its third fiscal year. The amount of money in the contingency reserve fund (CRF) at the end of the third fiscal year was $6,000. The total budgeted contribution to the operating fund in the third fiscal year was $30,000. The total budgeted contribution to the operating fund for the current (4th) fiscal year is $35,000. Is the strata corporation required to make a mandatory contribution to the contingency reserve fund? If so, what is the minimum amount of this contribution?

1. (1)The strata corporation is not required to make a mandatory contribution to the CRF.
2. (2)The strata corporation is required to make a mandatory contribution to the CRF of at least $2,500.
3. (3)The strata corporation is required to make a mandatory contribution to the CRF of at least $3,500.
4. (4)The strata corporation is required to make a mandatory contribution to the CRF of at least $2,750.