Nancy operates a business that uses the accrual method of accounting. In December, Nancy asked her brother, Hank, to provide her business with consulting advice. Hank billed Nancy for $7,800 of consulting services in year O (a reasonable amount), but Nancy was only able to pay $3,900 of the bill by the end of year 0. However, Nancy paid the remainder of the bill in year 1. a. How much of the $7,800 consulting services will Hank include in his income in year O if he uses the cash method of accounting? What amount can Nancy deduct in year O for the consulting services? Amount included by Hank Amount deducted by Nancy b. How much of the $7,800 consulting services will Hank include in his income in year O if he uses the accrual method of accounting? What amount can Nancy deduct in year O for the consulting services? Amount included by Hank Amount deducted by Nancy