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 $8,600 of consulting services in year 0 (a reasonable amount), but Nancy was only able to pay $4,800 of the bill by the end of this year. However, Nancy paid the remainder of the bill in the following year. Problem 1-77 Part-b (Algo) b. How much of the $8,600 consulting services will Hank include in his income this year if he uses the accrual method of accounting? What amount can Nancy deduct this year for the consulting services?