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In 2021, KV a tax consultant, entered into a 4 year contract with a client to perform services for $100k and will bill client $25k

In 2021, KV a tax consultant, entered into a 4 year contract with a client to perform services for $100k and will bill client $25k per year. If contract is terminated before the end of the 4 years, KV only has enforceable right to amounts billed. For AFS purposes, KV reports $60k in 2021, $0, 2022, $20k in 2023 and $20k in 2024. How much can KV include in taxable income considering the All Events Test. Does this create a deferred tax asset or liability in year 1?

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