On December 12, 2021, Kzoo Company, a calendar year, cash basis business, mailed a $5,600 bill to Mrs. Ransom for professional services rendered during the month of November. Mrs. Ransom dropped off her $5,600 check at Kzoo's office on December 28, but the company secretary did not deposit the check in Kzoo's bank account until January 3. Which of the following statements is true?

Multiple Choice

• According to the constructive receipt doctrine, Kzoo must recognize $5,600 income in 2021.
• According to the substance over form doctrine, Kzoo does not recognize $5,600 income until 2022.
• As a cash basis taxpayer, Kzoo can elect to recognize $5,600 income in either 2021 or 2022.
• As a cash basis taxpayer, Kzoo does not recognize $5,600 income until 2022.