Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.

In October Firm G completed a consulting engagement and received a $ cash payment for its services. In December, the client notified Firm G that it was unsatisfied with the work and demanded that Firm G refund $ of the payment. Firm G refused and referred the matter to its attorney. In Firm G settled the dispute by paying the client $ Firm Gs marginal tax rate was percent, and its marginal tax rate was percent.