On December 30, 2018 Walter receives a check for $500 drawn on an Owners account at the Last National Bank for payment for services rendered. Walter immediately deposits the check in his account at the First National Bank. The First National Bank places a hold on the account for several days which results in Walter being unable to access the funds until January 4, 2019.

Assume, nevertheless, that the check clears in the normal course of business and Walter is able to access the funds on January 4; in which year should Walter include the check and income?

How would your answer be different if the check was dishonored when Walter presented the check for payment?