How do the all events and economic performance requirement apply to the

following transactions by an accrual basis taxpayer?

a. The company guarantees its products for six months. At the end of 2018, customers

had made valid claims for $600,000 that were not paid until 2019. Also,

the company estimates that another $400,000 in claims from 2018 sales will be

filed and paid in 2019.

b. The accrual basis taxpayer reported $200,000 in corporate taxable income for

2018. The state income tax rate was 6%. The corporation paid $7,000 in estimated

state income taxes in 2018 and paid $2,000 on 2017 state income taxes

when it filed its 2017 state income tax return in March 2018. The company filed

its 2018 state income tax return in March 2019 and paid the remaining $5,000

of its 2018 state income tax liability.

c. An employee was involved in an accident while making a sales call. The company

paid the injured victim $15 ,000 in 2018 and agreed to pay the victim

S 15,000 a year for the next nine years.