Elppa Inc. is a calendar year, accrual method C corporation. In December 2018, Elppa enters into a contract with XYZ pursuant to which Elppa pays XYZ $200,000, and XYZ is required to renovate Elppa's parking lot by the end of 2019. In May 2019, XYZ commences renovating the parking lot, and in July 2019, the renovation is completed. 

(1)  When does economic performance occur? When can Elppa deduct the $200,000 payment?

(2)  Assume XYZ completes the renovation in February 2019. When does economic performance occur? When can Elppa deduct the $200,000 payment?