LO.6 Vorhies, Inc., a calendar year corporation that was created in January 2008, has gross receipts as follows:

Year Gross Receipts 2008 $3,250,000 2009 3,700,000 2010 4,950,000 2011 7,800,000 2012 9,200,000

a. Does Vorhies, Inc., qualify for the small corporation exemption for each year?
Explain.

b. If Vorhies’s gross receipts fall to $8.6 million for 2013, would Vorhies qualify for the small corporation exemption in 2014? Explain.