Please answer the following two questions in the space below. In order to receive as much partial credit as possible, please show any supporting calculations or analysis which might help us understand how you reached your conclusions. 1. Samuel owns a construction company and uses the accrual method of accounting. In November 2020, Sam I entered into a contract with a neighborhood association to renovate and repair the sidewds in front of each house in the subdivision. Samuel and the neighborhood association agreed that the work would be completed for $40,000. Samuel and his employees started the work during the last week of November 2020, and they completed all of the work on December 29, 2020. However, due to the holidays, Samuel didn't send the invoice to the neighborhood association until January 3, 2021, and the association did not pay him until January 9, 2021. In what year should Samuel recognize the income from the landscaping work, and why? 2. Samuel 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 requested a refund when they inspected his work on December 31, 2020. Given the New Year's holiday, Samuel did not pay the refunds until January 9, 2021. Samuel does not use the recurring item exception. When can Samuel deduct the refund payments, and why