Determine the proper tax year for gross income inclusion in each of the following cases.

a. A cash basis landlord, Steve, makes new tenants pay first and last month's rent at the start of the

lease. How does Steve report these items?

b. John is in the van rental business and uses the accrual basis of

accounting. In December he collected $7,000 in rents for the following January. When is the

$7,000 taxable?