For the purpose of determining gross income, which of the following is true?

1. A mechanic completed repairs on an automobile during the year and collected money from the customer. The customer was not satisfied with the repairs and sued the mechanic for a refund. The mechanic can defer recognition of the income until the suit has been settled.
2. A taxpayer who finds a wallet full of money is required to recognize income
3. An employee received stock worth $1,000 from her employer as compensation for her services. The employee cannot sell the to stock for three years and must forfeit the stock if she leaves her job before she is able to sell it. The employee must include $1,000 in her gross income in the year she receives the stock.
4. D. all of these choices are false.