1. In 2018, JKP Enterprises sued Buck Electronics for allegedly infringing on a copyright held by JKP Enterprises. In 2019, while the legal suit was pending, $100,000 of income from the sale of copyrighted material was impounded and held by a trustee of the court. In 2020, the court dismissed the legal suit and the impounded income was released to Buck Electronics. Under the all events test, when should Buck Electronics recognize $100,000 of income related to the sale of copyrighted material?

2020

2018

Never.

2019

2. Ray has a tax base of $30,000 and pays a tax of $3,000 on the first $25,000 and $1,100 on the next $5,000. This is an example of what type of tax rate structure?

Progressive

Proportional

Regressive

Oppressive