1. Answer each question below. a. Identify which year the taxpayer will report the following income note the method of accounting used in each scenario. (3 POINTS) Zips Corp is an accrual-method, calendar-year taxpayer. On December 1, 2021 Zips sells a washing machine $1,000 and dryer $1,500. The Washing machine was in stock and was delivered to the client December 15, 2021. However, the dryer was on back order. It was not delivered to the client until January 20, 2022. How much income will Zips Corp report each year? Explain your result. Zips Corp is a cash-method, calendar-year taxpayer. On January 1, 2021 Zips sells and receives payment for three contracts to provide monitoring services for its clients. The first contract covers one year of service for $15,000. The second contract covers two years of service for $30,000 and the third contract covers three years of service for $45,000. Zips begins providing services for each of the three contracts on January 1, 2021. How much income will Zips Corp report each year? Charlie, a cash-method individual taxpayer, purchased Linus Corp stock for $40,000 on May 19, 2021. At December 31, 2021 the stock was trading for $43,000 On December 31, 2022 the stock was trading for $49,000. On December 31, 2023 the stock was trading for $65,000. How much income will Roger report each year? 2021 2022 2023