1. WFO Corporation has gross receipts according to the following schedule:

Year 1 $ 21.00 million

Year 2 $ 25.00 million

Year 3 $ 20.00 million

Year 4 $ 29.50 million

Year 5 $ 35.00 million

Year 6 $ 23.00 million

If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?

1. Year 3
2. Year 4
3. Year 5
4. Year 6

None of the choices is correct