Kathy operates a gym. She sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600($600/24 = $25 per month). Cash payment is required at the beginning of the membership period.On July 1, 2016, Kathy sold a one-year membership and a two-year membership. If Kathy is a cash basis taxpayer, her 2016 gross income from the contracts is $960(S360 + $600). If Kathy is an accrual basis taxpayer, her 2016 gross income from the contracts is$330 [(6/12 times $360) + (6/24 times $600)]. If Kathy is an accrual basis taxpayer, her 2017 gross income from the contracts is$630 [(6/12XS360) + $450]. Only I is true. Only I and II are true. Only II and III are true. I, II, and III are true. None of the above