Please answer the following two questions in the space below. In order to receive as much partial credit as possible, please include any supporting information or analysis which might help us understand how you reached your conclusions. 1. Nicholas owns a landscaping service and uses the accrual method of accounting. In November 2023, Nicholas enters into a contract with a neighborhood association to update the landscaping in the front yards of each house in the subdivision. Nicholas and the neighborhood association agree that the work will be completed for $25,000. Nicholas and his employees start the work during the last week of November 2023, and they complete all of the work on December 30, 2023. However, due to the holidays, Nicholas doesn't send the invoice to the neighborhood association until January 5, 2024, and the association did not pay him until January 12, 2024. In what year should Nicholas recognize the income from the landscaping work, and why? 2. Nicholas is focused on customer satisfaction, and he therefore offers all of his customers a $500 refund if they are not fully satisfied with his work. Five of the homeowners in the neighborhood request a refund when they inspect his work on December 31, 2023. Given the New Year's holiday, Nicholas does not pay the refunds until January 12, 2024. Nicholas does not use the recurring item exception. When can Nicholas deduct the refund payments, and why