Colbert operates a catering service on the accrual method. In July of year 1 Colbert received a payment of $9,000 for 18 months of catering services to be rendered from August 1st of year 1 through July 31st year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?

A. $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3. B. $500 is recognized in year 1 and $8,500 in year 2. C. $9,000 is recognized in year 3. D. $2,500 is recognized in year 1 and $6,500 in year 2. E. $9,000 is recognized in year 1.