1. June 1, 2018, Apples accrual method calendar year landscape architecture firm receives a payment of $10,000 for services to be provided by December 2019. On 12/31/2018, Apple estimates that 75% of the work is complete and recognizes that amount in its financial statements. Apple is unable to complete the job in 2019 and recognizes another 15% of the contract leaving the remaining 10% for 2020. Apple uses the one-year deferral method for tax. What is Apples taxable income (related to this issue) in 2018? In 2019? In 2020?

2. Tesla is an accrual method calendar year taxpayer. Tesla sells certificates that permit photographers to have film developed and printed. In July of 2018, Tesla receives a payment for 2 certificates ($25 each). One certificate is submitted and processed in September 2018. The other certificate is processed in June 2020. If Tesla uses the deferral method, how much income is included in each year for 2018, 2019 and 2020?

3. November 1, 2018, Travel Agency (accrual, calendar) receives $600 for an airplane ticket. Two weeks later, Travel Agency delivers ticket for 2019 flight to customer. No additional services are required by Travel Agency. The ticket costs Travel Agency $550 and Travel Agency keeps excess as commission under agreement with customer. Travel is only required to refund commission if the airline issues a refund and includes the $50 commission in its 2019 financial statements. When does Travel Agency recognize income under deferral method?