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WFO Corporation has gross receipts according to the following schedule: Year 1 $3.2 million Year 2 $4.2 million Year 3 $5.5 million Year 4 $4.7

WFO Corporation has gross receipts according to the following schedule: Year 1 $3.2 million Year 2 $4.2 million Year 3 $5.5 million Year 4 $4.7 million Year 5 $6.2 million Year 6 $8.2 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?

Year 3

. Year 4

. Year 5

. Year 6.

None of the choices are correct.

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