Wow. I appreciate everyone's feedback!
So I just looked over the service records that came with the vehicle when purchased it in May..
Dating back to 11/8/2010, the 4runner was diagnosed and the fault code #PO420 is seen on the invoice. The shop traced and located the problem to oxygen sensor which was blown out of exhaust pipe. One hold down stud was broken, so the shop retapped other stud. Then secured the oxygen sensor in exhaust pipe.
On 11/15/2013, the fault code #PO420 reappeared and was described as the "cat below threshold" on the invoice. The shop removed broken shields on exhaust system.
Lastly, on 11/18/2013, again the code came up. Recommends owner to replace the oxygen sensor.
The rest of the records I have don't list a oxygen sensor being replaced. So you guys hit the nail on the head.
So rear O2 sensor it is.
Should I replace both, or stick to the "if its not broken, don't fix it" motto?
Finally, once I replaced the sensor, how do you reset the system?