Freda is a cash basis taxpayer. In 2016, she negotiated her salary for 2017. Her employer offered to pay her $21,000 per month in 2017 for a total of $252,000. Freda countered that she would accept $10,000 each month for the 12 months in 2017 and the remaining $132,000 in January 2018. The employer accepted Freda's terms for 2017 and 2018.
a. Did Freda actually or constructively receive $252,000 in 2017?
b. What could explain Freda's willingness to spread her salary over a longer period of time?
c. In December 2017, after Freda had earned the right to collect the $132,000 in 2018, the employer offered $133,000 to Freda at that time, rather than $132,000 in January 2018. The employer wanted to make the early payment so as to deduct the expense in 2017. Freda rejected the employer's offer. Was Freda in constructive receipt of the income in 2017? Explain.