(LO2) a. Damian owns several stock investments that typically pay out dividend income quarterly. He uses direct deposit and receives a \(\( \$ \) 1,000\) payment in his account on December 31, Year 1. Damian withdrew the \(\( \$ \) 1,000\) from his account on January 5, Year 2. In which year must he report the dividend income?

b. Hisham is a popular, veteran soccer player looking to end his career in his hometown of Seattle, WA. The team management has offered Hisham \(\( \$ \) 4,000,000\) for a one-year contract along with a \(\( \$ \) 1,000,000\) signing bonus. Hisham would prefer a two-year contract for \(\( \$ \) 7,000,000\) with a lower signing bonus of \(\( \$ \) 500,000\). Team management agrees. What amount of income must be reported by Hisham in the first year of his contract if Hisham actually receives the \( \$ \)3.5 million in year 1 ?